Conrad Hotel profits up 11% in general boom for Dublin hotels

Pre-tax profits at the firm that owns the exclusive five-star Conrad Hotel in Dublin last year increased by 11% to €1.025m.

According to accounts just filed for the 191-bed hotel, the business enjoyed the rise in pre-tax profits after revenues increased by 7%, going from €12.16m to €12.95m.

Shareholders last year agreed to inject €2.6m into the business to fund a capital expenditure programme.

The filings by Earlsfort Centre Hotel Proprietors Ltd show that the hotel was revalued and has a book value of €20.7m resulting in a surplus on revaluation of €4.85m.

The new accounts also reveal that during the year, bank loanswith Nama were refinanced with AIB and all charges held by Nama were satisfied.

A plate of happiness right there... Sweet treats @ConradDublin #TasteofConrad #AfternoonDelights #conraddublin pic.twitter.com/xbE60vbqyB

— Megan Virgo (@MeganVirgo) July 14, 2015

Former billionaire developer Bernard McNamara bought a 45% share in the business in 2007 and the filings show that he resigned as a director in February 2012.

The accounts show the hotel recorded an operating profit of €1.38m in 2014, following on from €1.2m in 2013.

However, last year, interest payments totalling €362,984 reduced the firm’s profits to €1.025m.

Last year’s surplus takes account of non-cash depreciation costs of €831,285. The firm also incurred a loss of €718,174 on the sale of a fixed asset.

The numbers employed rose by one to 161, with staff costs up from €4.71m to €4.79m. The accounts disclose that the firm has a management agreement with shareholder, Conrad International Corporation and incurred €747,871 in management charges and related fees.

The firm’s net debt at the end of last year stood at €15.37m. Shareholder funds totalled €4.9m, which followed a shareholders’ deficit of €4.2m in 2013.

The company’s cash pile last year increased seven fold from €480,180 to €3.725m. The Conrad Hotel is benefiting from the general boom in business for Dublin hotels.

A report by PwC earlier this year predicted that Dublin will record the highest growth in revenue per available room in Europe, at 8.8%, this year, followed by Madrid at 5.6% and London at 4.6%.

PwC also forecast that in 2016, Dublin’s 152 hotels will top the growth story again, with an 8% rise expected.

A survey by Crowe Horwath found Dublin needs up to 5,000 new hotel rooms, particularly in the city centre, as all available rooms are filled during peak months.

The survey found that average occupancy levels in the capital reached 77.2% last year, meaning effectively almost full occupancy during busy times.