Rising costs drag Citywest Hotel profits down 79%

Profits before tax at the country’s largest hotel, the Citywest in Dublin, last year declined sharply by 79% to €316,634.

A trebling of non-cash depreciation costs to €1m and a similar scale increase in operating lease costs to a related entity led to the hotel’s drop in profits. However, its revenues rose 11% to €25.33m, according to newly-filed accounts for operating company Cape Wrath Hotel Ltd.

Post-tax profits amounted to €218,066 after the company paid €98,568 in corporation tax. Brehon Capital has since rebranded as Tetrarch Capital. It paid €29m for the Citywest in 2014 and it remains Ireland’s largest hotel with 789 rooms. The company also owns the Marker Hotel in Dublin, the Powerscourt Hotel in Wicklow and Mount Juliet in Kilkenny.

The Citywest employed 330 people last year with staff costs rising from €7.95m to €8.66m. Pay to senior management totalled €375,777 last year, down from €421,299 the previous year.

Earlier this year, the Citywest had a planning blow when Bord Pleanála refused planning permission to allow the venue to stage concerts. This followed an appeal by a subsidiary of 3Arena owner Live Nation against the decision to grant.

In its ruling, Bord Pleanála said the “use of this edge- of-city site for public concerts is highly inconsistent with the overall character of the area which is typically residential, including local amenities and uses such as schools and convenience retail”.


More in this Section

US rate fears crash party

No surprise if airlines collapse as winter sets in

Little drama and little joy from today’s budget


Breaking Stories

Bellway cautions over Brexit threat after posting profits hike

170 new jobs for Carlow as MSD announce second facility

Former German central banker warns of ‘false sense of security’ on Brexit deal

Paddy Power Betfair in the dog house after £2.2m fine

Breaking Stories

Need a cheap and easy home revamp? Here’s how to tile your own splashbacks

Michael Caine: ‘Don’t look back, you’ll trip over’

How to survive the rest of Sober October if you’ve made it this far

Meet the A-listers of Zeminar 2018

More From The Irish Examiner