Castlemartyr and Gresham hotels make strong post covid-19 recoveries as revenues surge

Castlemartyr recorded revenues of €12.45m for last year compared €7.11m for the prior nine-month period in 2021.

Despite a surge in revenues, Castlemartyr recorded a loss as administrative expenses increased from €6.2m to €11.99m.

Companies behind two well-known hotel brands in the Irish hospitality sector, the Riu Plaza The Gresham Dublin and the five-star Castlemartyr resort in Co Cork last year made strong business recoveries post-covid-19.

New accounts lodged by Castlemartyr Country Hotel Resort Ltd show that revenues last year increased by 75pc from €7.11m to €12.45m.

In common with the Spanish-owned Riu Plaza The Gresham Dublin, Castlemartyr is also foreign-owned and owned by the Singapore-based Hotel Investments (Ireland) Pte Ltd.

The accounts show that despite the sharp increase in revenues, Castlemartyr Country Hotel Resort Ltd last year recorded a pre-tax loss of €903,929. The revenues of €12.45m for last year compared to revenues of €7.11m for the prior nine-month period in 2021.

The firm recorded the loss as administrative expenses increased from €6.2m to €11.99m.

The directors state that “the company made a significant investment in major renovation and refurbishment works during the year in order to upgrade the property”.

The directors state that they "are confident that the company will move to a profit in the coming years as a result of this investment”.

The directors’ report states that “while the renovations disrupted normal trading during the year, the directors remain confident that the company will continue its growth and will move to a strong trading position as guests return to pre-pandemic levels and functions return to full attendance”.

They state that they are satisfied with the performance of the company and continue to work towards key performance market indicators such as improving market share, turnover and margins.

The directors state that the company is well-positioned to manage risks such as increased costs and competition. Numbers employed by the business last year from 199 to 392 as staff costs almost doubled from €3.15m to €6.06m.

The profit takes account of non-cash depreciation costs of €803,404. The firm benefited from other operating income of €594,736 last year compared to €2.02m under that heading in 2021.

Separate accounts show that pre-tax profits at Gresham Hotel Company Ltd which operates the four-star hotel on Dublin’s O’Connell Street increased more than fourfold from €1.57m to €6.83m last year.

This followed revenues almost tripling from €7.78m to €23.32m.

The main driver behind the revenue surge was income from room sales more than tripling from €6.15m to €19.28m.

Bar and food sales more than doubled from €1.54m to €3.63m while other income increased from €23,015 to €172,804.

Rental income increased from €62,333 to €232,880. The firm’s profits were last year inflated by Government grants received of €1.1m which was down sharply on the €2.7m received under that heading in 2021.

The pretax profit for 2022 takes account of non-cash depreciation costs of €1.64m and €1.59m in management services charged by fellow affiliates.

At year end, that hotel firm’s shareholder funds totalled €54.64m which included accumulated profits of €45.24m. The directors state that they were satisfied “with the level of retained reserves at year-end”.

Numbers employed increased from 205 to 276 as staff costs more than doubled from €3.3m to €7.55m. The hotel was purchased by Spain’s RIU Group for €92m in 2016.

The net book value of the company’s fixed assets last year increased from €51.1m to €53.3m.

The company’s cash funds almost tripled from €2.3m to €6.12m in 2022.