Stars boost coffers at top Dublin hotel

Profits at one of Ireland’s most exclusive hotels remained relatively constant last year, with some of the world’s biggest music stars helping to boost its coffers.

After-tax profits at the Merrion Hotel on Dublin’s Upper Merrion Street fell marginally from €1.44m to less than €1.43m, as revenues also remained largely unchanged since 2012 at 16.8m — an increase of €540,000 in the year.

Despite revenues rising in the 12-month period, costs also rose, thus eating into the benefits and reducing gross profit for the year by €91,000 compared to 2012.

The number of people employed by the hotel also rose last year, with an additional nine staff employed, despite four management positions being cut. Consequently, wage costs increased by more than €500,000.

In April of this year, the luxury five-star hotel was granted planning permission to build an extension onto its existing property after a successful appeal was made to An Bord Pleanála.

A nearby florist had objected to the location of a fire exit on the proposed development on Lower Baggot Street.

On appeal, An Bord Pleanála rejected the suggestion that the exit would have a negative impact on the florist’s business.

Landmark Investment, the owner of the hotel, is 50%-owned by the Northern Ireland-based Hastings hotel group, which last year saw pre-tax profits fall by 18%.

The decline in profits across the group’s hotels came despite the revenues increasing by 4% from £37.59m (€47.4m) to £39.2m to the end of October last year.

The Merrion last year welcomed such stars as Bruce Springsteen and Rihanna, while US President Barack Obama has also stayed.

Directors of the hotel did not recommend payment of a final dividend.