Radisson Blu operator sees six-fold increase in profits

Pre-tax profits at the firm that operates the four-star Radisson Blu hotel in Dublin city centre last year rose more than sixfold to €775,946.

New accounts filed by Luxor Leisure Ltd show the firm had the jump in pre-tax profits after its gross profit rose 6% from €8.67m to €9.18m.

The 150-bedroom Radisson Blu on Dublin’s Golden Lane is owned by Luxor Investments, while Luxor Leisure operates the hotel. Both firms are owned by Galway building company JJ Rhatigan.

Last year, Ulster Bank sold loans for the Rhatigan-owned hotel to Goldman Sachs and recently the Galway-based builder and the international banking firm reached a deal over the firm’s debt and the ownership of the high-profile hotel.

The directors of Luxor Leisure Ltd state that the group refinanced its debt with Goldman Sachs unit, Beltany Property Finance Ltd.

A note states: “Under the new agreement, the company acts as guarantor for the loan. The directors do not envisage that this guarantee will be called upon.”

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

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

The average number of workers employed at the hotel fell from 132 to 119 with staff costs last year reducing from €2.86m to €2.79m.

“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,” says a note attached to the accounts.

“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 firm’s cash last year fell from €1.6m to €1.4m.

The company pays the Rezidor group an operator fee, a marketing contribution and a reservation fee.

Separate accounts lodged by Luxor Investments Ltd show the firm had a reversal of an €8m writedown last year in its investment properties after a fresh evaluation.