Owner of Belfast's Europa Hotel and co-owner of Dublin's Merrion profits fall as group expands

Pre-tax profits at the owner of Belfast’s Europa Hotel and co-owner of Dublin’s Merrion Hotel fell 39% last year despite posting a rise in revenues.

New accounts filed by the North’s largest hotel group, the Hastings Hotels Group show that profits fell to £3.2m (€3.5m) as revenues rose 4% to over £41.1m in the 12 months to the end of October.

The group’s revenues were boosted last year with the opening of the Grand Central Hotel in Belfast last summer.

The group owns seven luxury hotels, including the five-star Culloden estate on the shores of Belfast Lough in Co Down and has a 50% stake the Merrion Hotel from which it shared £1m in profits last year.

The profits during the year were boosted by a £334,937 gain in the value of an investment property and it paid out a dividend of £569,400 to its owners.

Staff numbers increased from 1,106 to 1,244 year and staff costs rose 12% to over £14.8m, while directors’ pay fell from £1.1m to £988,622.

The directors say in the accounts that the trading conditions are expected to remain competitive through this year.

As the group’s expansion continues, the accounts show it spent almost £23.6m on buying assets. However, its interest costs have almost doubled from £761,071 to £1.49m.

The profit takes account of non-cash depreciation costs of £3.6m. At the end of its financial year, the group had total shareholder funds of over £46.3m, including cash of £3.2m.