Radisson Blu operator’s profit up 33%

Operating profits at the firm that operates the 4-star Radisson Blu hotel in Dublin city centre last year increased by 33% to €535,740.

The Galway-based building firm, the Rhatigan group, owns the 150 bedroom Radisson Blu on Golden Lane in Dublin city centre.

New figures show that the group-owned Luxor Leisure Ltd saw operating profits last year rise from €402,312 to €535,740 in the 12 months to the end of August 31 last.

This followed the firm increasing its gross profit by 7.5% from €8m to €8.6m.

The firm entered a 20-year agreement with the Rezidor group in 2005 to manage the hotel under the Radisson Blu brand.

The figures show that the firm incurred a steep drop in pre-tax profits going from €402,312 to €115,816.

The sole factor behind the drop was the firm paying €419,924 in bank interest charges with zero payments recorded under that heading in 2012.

The directors of the firm are Padraic and Sandra Rhatigan and in the directors’ report they state they “are satisfied with the company’s performance during the year”.

The average number of workers employed at the hotel decreased during the year from 137 to 132 with staff costs last year increasing from €2.45m to €2.86m.

A note attached to the accounts states that in the context of the economy in general the directors acknowledge the challenges facing the company in relation to trading and financing.

The note states: “However, the plans implemented to improve efficiencies and make savings where possible whilst maintaining service levels to guests have been successful.”

“The directors have prepared trading projections and are of the opinion that the company’s trading performance will continue to improve and the company will have adequate resources to meet its working capital requirements for the foreseeable future.

The note states: “The directors are of the view that the company will continue to receive the support of its group undertakings in relation to the future financing of the company.”

The figures show that the firm’s accumulated losses decreased from €1.17m to €1.05m. The firm’s cash last year increased from €1.3m to €1.6m.

The filings state that the company pays the Rezidor group an operator fee, a marketing contribution and a reservation fee, though those figures are not disclosed in the accounts.

The accounts confirm the company entered a 35-year lease with the Golden Lane Consortium on December 24 2007.