The Jurys Doyle Hotel group today posted a 12% drop in first half pre-tax profits to €28.8 million. Turnover was €138 million, up 6%.
The figures were in line with market forecasts and the hotel group expressed cautious hopes for trading conditions for the rest of the year.
The group, which operates in Ireland, the UK and the US, said that given market conditions it was pleased with its performance in the six months to the end of October. Globally, the hotel sector has been hit by the effects of the September 11 attacks in the US and the outbreak of foot and mouth disease earlier in the year.
Operating profit slipped 2% to €40.6 million during the six month period, while earnings per share fell by 10% to 43.3 cent.
The group's 240-bedroomed Jurys Inn in Croydon, London will open early this year with a Jurys Inn in Newcastle scheduled for opening early next year.
Jurys Chairman Walter Beatty said the first half of the year was the most challenging the hotel sector had faced for many years. He said the group managed to fare much better than many others in the sector with the group's 31 properties making a profit during the six month period.
'Our three star properties enjoyed good increases in room rates in Ireland, while our ten Jurys Inns in the UK and Ireland demonstrated their competitive advantage and performed well, meeting the market challenges head on,' according to Pat McCann, Jurys Doyle CEO.
He said that against the backdrop of the September 11 events, the group's three Washington hotels performed satisfactorily. Plans to develop a new Jurys Hotel Boston are also progressing.
'Our strategy and the dedicated work of our team has enabled us to manage through a challenging time. We remain committed to maintaining our momentum and developing and expanding our portfolio of hotels and inns, especially in the UK,' he said.
'Overall, we are cautiously optimistic for the trading environment for the rest of the year,' Mr McCann concluded.
Shares in Jurys Doyle closed up 18 cent at 9.20 in Dublin.
