Operating profits at a four-star hotel business owned by one of the best-known family names in the Irish hotel industry last year increased by 16% to €670,289.
The 18th century Fitzpatrick’s Killiney Castle Hotel in Dublin is owned by Eithne Scott-Lennon, whose brother and well-known hotelier, John Fitzpatrick runs two very profitable Fitzpatrick hotels in New York.
Newly-filed accounts for the firm that operates the 113-bedroom Fitzpatrick Killiney Castle Hotel show that gross profit at Killiney Hotels Ltd increased by 2%, to €5.89 million, in the 12 months to the start of last October.
The increase in operating profits last year followed the firm successfully refinancing the business and securing a €3.6m write-down on bank loans in 2014.
Prior to the bank deal, the firm owed €10m in bank loans and overdrafts.
The firm’s net debt was €6m at the end of its financial year.
The accounts show that the firm recorded a modest pre-tax profit last year of €20,962.
This followed the firm’s bank interest payments doubling from €320,947 to €644,692.
In the accounts, the directors said they are very satisfied with the performance of the business having consolidated the turnover and earnings growth achieved in 2015.
Last year, the two New York hotels owned by John Fitzpatrick made a combined after-tax profit of $2.3m, in a period when the group achieved a record occupancy rate of 91%.
Numbers employed by Killiney Hotels last year increased from 109 to 117 with staff costs, including directors’ remuneration, increasing marginally from €2.91m to €2.99m.
Remuneration to directors, alone, last year increased from €193,551 to €247,500.
The company’s operating profit takes into account non-cash depreciation costs of €423,698 and administrative expenses totalling €5.22m.
At the end of its last financial year, the firm’s accumulated profits stood at €3.36m and the firm’s cash pile increased from €311,074 to €339,867.
In relation to the Fitzpatrick’s two Manhattan hotels, revenues there increased by 1% to $26.55m (€23.74m) in the year to the end of last September.
The business is undertaking a $2m (€1.79m) refurbishment of its hotels, to include new furnishings in its four-star Fitzpatrick Manhattan property, having already upgraded in-room televisions and wifi internet systems.
Reports state that this will be followed in 2017 by a $750,000 upgrade of the 155 bedrooms in its Grand Central hotel.
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