FBD Property & Leisure plans to invest €7.5m in its hotels in Ireland and Spain

The former property arm of insurance group FBD is targeting 50% earnings growth for 2015 and plans to invest €7.5m in its existing hotels next year.

FBD Property & Leisure Ltd is projecting EBITDA of €9m this year, which would be a 50% rise on last year’s.

In addition, the company is to invest €7.5m in its hotel portfolio, although it has no plans to acquire or build new properties. It invested €2m in its hotels last year.

The business owns and manages three hotels in Ireland, Dublin’s Castleknock Hotel and Country Club, and the Waterford pair of Faithlegg House and the Tower Hotel, as well as two on Spain’s Costa del Sol.

The company is targeting €50m in operating profits from its hotel business over the course of the next five years and is investing on the back of a recovery in tourist trade in Ireland and Spain.

FBD Property & Leisure is now fully-owned by Farmer Business Developments, after FBD Holdings recently sold its 50% share for €48.5m in order to bolster its reserves ahead of pending new capital rules for insurance companies.

According to FBDPLL chief executive, David Kelly, this is an “exciting time” for the business. “We have an ambitious five-year growth strategy and are already seeing significant growth in EBITDA this year.”

“We are seeing, at first hand, that revenue is up on 2014 across our portfolio. Our development plan, including a significant capital investment, means our business is in a strong position to compete and grow,” he added.