Inn brand gives Jurys a welcome boost as profits rise 2.5% to €29.5m

JURYS DOYLE Hotel Group returned to profits in the six months to October 31, boosted by strong performances from the Jurys Inn brand.

Good recovery in the USA hotel in Washington and a solid performance from the group’s London hotels also helped underpin the performance.

Results for the period showed turnover stayed pretty flat at €138.5m which was a modest 0.5% rise on the comparative figure of €137.8m.

Profits before tax rose 2.5% to €29.5m.

When disposals of the Waterford and Skylon hotels, that generated over €1m are included, the pre-tax figure is boosted by 6.3% to €30.6m for the period.

Earnings per share rose a modest 1.98% to 38.4c per share and the low level increase reflects the impact of the share placing in February 2002.

Shareholders have been rewarded with a 5% boost to their dividend bringing it to 8.14c for the six months under review.

Chief executive Pat McCann, commenting on the trading period highlighted the importance of the group strategy of building “a balanced portfolio” of hotels and inns in major cities -in particular the success of the Jurys Inn brand.”

It has continued to illustrate the “defensive” attractions of our strategy in challenging times in addition to its benefits in more buoyant times, he said.

As a result of the dual approach to the industry and a strong focus on local sales and marketing strategies the group wound up with occupancy levels above the industry norm.

It was the occupancy performance, above the industry average, that “enable the group to return to profit growth during the period”, said Mr McCann.

It emerged that no hotel lost money during the period and the group is confident about the outcome.

Mr McCann was insistent the strategy of expanding the Inns in Britain and the development of its four and five star hotels in Ireland, the US and Britain will continue to form the basis of its development in the years ahead.

Overall he said the outcome for the six moths reflected the group’s ability to respond to the challenging business environment in a way which sets us apart from many of our industry peers. “This could not happen without the continued commitment of our employees to whom I am very grateful,” he said.

At this stage Jurys Doyle operates 30 hotels in Ireland, Britain and the USA.

In Ireland 50% of its occupancy is delivered by the business sector, against 60% in Britain and compared with 55% in the US.

Tourism is the next biggest driver of business accounting for 25% each in the case of Ireland and Britain with the US hotels 30% reliant on that market segment.

Event related activities and other business makes up 25% of the Irish business, while it contributes 15% in the case of the US and Britain.