The firm which operates the five-star Merrion Hotel in Dublin last year returned to pre-tax profit to record pre-tax profits of €4.42m.
New accounts filed by Hotel Merrion Ltd show that the hotel firm returned to pre-tax profit as revenues increased almost three fold from €9.85m to €26.78m in the 12 months to the end of October last.
The pre-tax profits of €4.42m last year follow pre-tax losses of €572,573 in 2021.
Country music superstar Garth Brooks added to the hotel's revenues during the 12 months under review when he stayed at the hotel’s €3,500 a night penthouse suite during his string of sell-out concerts at Croke Park last September.
The directors state that the hotel "had a strong year with the average rates in excess of pre-Covid levels and occupancy at 80% of those levels".
They add that "demand for future bookings into 2023 and beyond continues to be strong".
The directors state that during the 2022 financial year, the Merrion Hotel started the year with continued Covid-19 restrictions.
They point out that "however, as global travel restrictions eased in early 2022 business levels increased significantly".
The hotel’s accommodation revenues last year increased more than three fold from €4.5m to €16.13m while Food and Beverage revenues almost doubled from €4.38m to €8.59m.
Leisure centre revenues surged from €273,468 to €717,440 while rental income more than doubled from €228,897 to €595,554. Other income increased from €442,621 to €732,966.
The business last year recorded an operating profit of €5.04m and interest payments of €622,198 resulted in the pre-tax profit of €4.42m.
A note attached to the accounts states that "the company has also been able to build up a strong cash position with projections showing another strong year for 2023".
The Merrion Hotel has long been a hotel of choice for a host of Hollywood A-listers and music stars when they arrive in 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.
In December 2020, Lochlann Quinn transferred his 25% 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 further, rising by 19 from 336 to 355 with staff costs increasing sharply from €3.12m to €9.38m.
A note states that included in "wages and salaries" is Covid-19 Employer Wage Subsidy Scheme (EWSS) that is a credit balance of €2.15m for 2022 and €4.51m for 2021.
Directors' pay increased from €120,000 to €160,000.
The pre-tax profit last year takes account of non-cash depreciation costs of €1.63m. The firm's cash funds during the year increased from €2.23m to €2.61m.
Reporting by Gordon Deegan
