The five star Merrion hotel in Dublin is eyeing a return to pre-tax profit this year after two loss-making pandemic hit years.
New accounts show that Hotel Merrion Ltd recorded pre-tax losses of €572,573 in the 12 months to the end of October last year due to the Covid-19 impact on the business.
The directors state that the business was adversely affected by the Covid-19 pandemic due to severe Government restrictions "for almost six months of the year".
Hotels here did not re-open until June 2nd of last year after being shut since December 2020 due to pandemic restrictions.
The hotel firm's pre-tax losses of €572,573 narrowed by 86% on the pre-tax losses of €4.06m recorded in the prior year.
Last year revenues reduced by 44% from €17.5m to €9.85m.
However, the hotel firm’s 2020 revenues were skewed after the business recorded €6.28m in apartment sales.
Last year, the hotel’s accommodation revenues declined by 17% from €5.4m to €4.5m as 'Food and Beverage’ revenues declined by 10% from €4.89m to €4.38m.
The accommodation revenues of €4.5m last year compared to pre-Covid-19 accommodation revenues of €15.7m and 2021 Food and Beverage revenues of €4.5m compare to pre-Covid-19 Food & Beverage revenues of €8.6m.
The business last year recorded an operating profit of €125,066 and interest payments of €697,639 resulted in the pre-tax loss.
In their report, the directors state that "the demand for future bookings is strong and we maintain market share".
They add that "we believe that we can recover revenue streams and regain profitability as global travel restrictions ease".
The hotel is on course for a return to profit this year with room rates rebounding post Covid with advertised online room and suite rates for Sunday October 2nd ranging from €495 to €1,950.
The Merrion hotel has long been a hotel of choice for a host of Hollywood A-listers and music stars when they arrive into Dublin.
The multi-award winning hotel comprises 123 rooms and 19 suites and is co-owned between the Northern Ireland Hastings Hotel group and Martin Naughton and up until last year Lochlann Quinn.
During the year, Lochlann Quinn transferred his 25 per cent shareholding in the business to be divided equally among his six children, Oisin, Conal, Daragh, Lochlann Jnr, Alison and Sarah.
Lochlann Quinn remains a director of the business.
Numbers employed at the business last year rebounded by 130 from 206 to 336 though staff costs reduced from €6.05 million to €3.12 million. Directors' pay remained static at €120,000.
The pre-tax loss last year takes account of non-cash depreciation costs of €1.69 million.
