Gresham Hotel sees profits increase by 18% to €5.8m
Pre-tax profits at the Spanish-owned Gresham Hotel on Dublin’s O’Connell Street last year increased by 18% to over €5.8m.
The Gresham Hotel Company Ltd recorded the increase in pre-tax profits as revenues went up by 15% from €17.6m to €20.2m.
The hotel was purchased by Spain’s RIU Group for €92m in 2016 and the owners continued to reap the dividends of its purchase after taking a dividend of €7m from the business last year, following a dividend payout of €3m in 2017.
The hotel firm recorded post-tax profits of €5.1m after paying corporation tax of €737,403.
The accounts disclose that the business recorded an increase of €2.23m from room revenues, which were up from €13.68m to €15.91m.
The owners are set to further increase room revenues in the near future after the hotel secured planning permission for an additional 48 rooms last month.
This follows Dublin City Council giving the green light to convert two floors of a car park into a new extended Lavery Wing, housing the 48 rooms.
The council ruled that the proposed development would not injure the amenity of property in the vicinity.
The hotel business also increased bar and food sales from €3.5m to €3.76m last year along with other income totalling €279,640 and rental income of €294,606.
The profit last year takes account of non-cash depreciation costs of €1.6m and management services of over €1.3m charged by fellow affiliates.
Accumulated profits at the firm at the end of 2018 totalled €40m.
The firm’s cash pile reduced from €3m to €1.2m.
Staff costs increased from €5.67m to €5.9m and staff numbers remained unchanged at 163.
