Contrasting fortunes at Lee Hotel Group properties

Pre-tax profits at the four-star Mespil Hotel in Dublin increased by 17% to €2.5m last year.

The hotel’s gross profit increased by 16% to €8.42m, with management attributing the improved performance, during the 12 months to the end of last September, to the continuing recovery in the hotel sector in Dublin and the substantial investment made in refurbishing the hotel.

The Mespil was approved by Fáilte Ireland as a four-star hotel in early 2016 as a result of the improvements made to the property.

The hotel’s operating profits jumped 15% last year, to €2.63m, while it recorded a post-tax profit of €2.2m after paying corporation tax of €314,161.

It employed 76 people as of the end of September, with staff costs marginally increasing to €3.3m.

The Lee Hotel Group, which ultimately owns the Mespil, saw a slightly different performance last year at its other property, the Sligo Park Hotel.

Newly filed accounts show the hotel recorded a pre-tax profit of €437,431, with revenues rising from €4.57m to €4.64m. However, the profit was down by 34% on the previous year’s €664,769.

“Although trading has seen an uplift in the past two years, the competitive environment continues to be extremely difficult. Uncertainties relating to how the region will recover and currency risk in conjunction with Brexit are regarded... as the principal risk facing the company,” management said in the Sligo Park accounts.