Francis and John Brennan's five star Park hotel in Kenmare had its "most successful year ever" last year.
That is according to majority owner of the business, John Brennan, who admitted to being "more nervous" now about the business’s prospects than any time over the past two years.
"We had a bumper year last year but 2022 won’t be as good," he said.
"Last year was an unbelievable year for the business but there is a softening in the market today on all fronts."
Mr Brennan put this down to the economic climate, increasing staff and other costs, rising inflation along with the uncertainty created by the war in Ukraine for the hospitality business.
He made his remarks when commenting on new accounts for the County Kerry business for the pandemic hit 2020.
The Beechside Ltd accounts show that the business recorded pre-tax losses of €379,358 as revenues declined sharply by 59% from €5 million to €2.02 million.
The pre-tax loss of €379,358 followed a pre-tax profit of €348,687 in 2019.
Mr Brennan said that the business was hit by a 'tsunami’ in 2020.
He said that on an Earnings Before Interest Tax Depreciation and Amortisation (EBIDTA) basis "we broke even which wasn’t bad for the year that was in it. We were only open for four months".
Mr Brennan said that bookings for the coming summer "have yet to be seen".
"Irish bookings have stalled, while international travel hasn’t kicked in to the way one would have needed it to happen so far and that was always going to be slower coming back," he said.
"Every time we opened our front doors over the past two years, we were bombarded and now it is a little softer and we are thinking ‘it is not busy’. It is busy and we are busier than 2019 which is the last fair comparison."
Mr Brennan added that the business last year benefited from no outward international travel and pent up domestic demand.
He said that a €2 million complete refurbishment of the ground floor led by designer, Bryan O’Sullivan, also paid off.
He said that the Park was only open for five months in 2021 but underlining the strength of the business, he said that revenues were only a little behind a very strong 2019.
Mr Brennan said that business "is currently under savage pressure from a costs point of view".
"For the foreseeable future, the market is going to be a lot tougher than anyone expected it to be 18 months ago," he claimed.
"I would be concerned that costs in the current environment will run to such a level that will put enormous pressure on a sustainable business."
Mr Brennan also hit out at business having to foot the cost of Government giving an additional once off public holiday this year.
"It is business that pays for that - not the Government. If you employ 180 as we do, you pay the 180 for not working," he said.
"The bank holiday is only a cost to business and not a cost to anyone else. We are fine. We are in good shape but a lot of struggling businesses are faced with another day's pay."
"In the current environment businesses are under savage pressure with rising costs and they are now faced with an extra day’s pay with no productivity."
At the end of December 2020, shareholder funds totaled €3.2 million. Cash funds increased from €705,819 to €2.13 million.
Numbers employed reduced from 61 to 38 and staff costs reduced from €1.73 million to €1.07 million.
The business availed of Covid-19 wage supports and the amount received in Government grants totaled €277,900.
