The five-star Merrion Hotel in Dublin last year enjoyed a record year as revenues surged by 17% to €31.27m.
New accounts show that Hotel Merrion Ltd's operating profits increased by 2% to €5.14m in the 12 months to the end of October on the back of the bumper revenues which increased by €4.49m from €26.78m to €31.27m.
The directors state the 2023 financial year built upon the strong growth started in 2022 and "with the return of international leisure business, the year was the strongest to date with our highest average rates and occupancy levels of 81%".
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 and rock superstar, Bruce Springsteen added to the hotel's revenues during the 12 months under review when he stayed there in May 2023 for his sell out-stint of concerts at the RDS Arena.
The directors state that "demand for future bookings into 2024 and beyond continue to be strong".
However, rising loan interest rates in 2023 resulted in pre-tax profits declining by 4% from €4.42m to €4.24m.
The company's loan interest bill last year increased by 45% from €622,198 to €904,484. Profits were also hit by a €150,000 non-cash write down in the value of investment property.
The firm recorded a post tax profit of €3.59m after incurring a corporation tax charge of €646,780.
The hotel's accommodation revenues last year increased by 23% from €16.13m to €19.9m, while "Food and Beverage" revenues increased by 11% from €8.59m to €9.56m.
Leisure centre revenues totalled €872,918 while rental income amounted to €426,022. "Other income" declined from €732,966 to €500,025.
A note attached to the accounts states that "the company continues to maintain a strong cash position with projections showing another strong year for 2024".
The company generated net cash of €6.69m from its operating activities last year. The firm last year paid off €5m in loans in related party loans and owed €22.89m under that heading at the end October last.
The multi-award winning hotel comprises 123 rooms and 19 suites and is co-owned between the Northern Ireland Hastings Hotel Group, Martin Naughton and members of Lochlann Quinn's family.
Advertised room rates on the hotel's website four weeks from now on Friday, November 22 range from the cheapest at €450 per night to the Penthouse Suite across two floors at €4,500 per night.
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 increased from 355 to 367 made up of 295 under "hotel staff" and 72 in management.
Staff costs increased by 38%, rising from €9.38m to €12.93m.
Directors' pay remained at the same level at €160,000.
The pre-tax profit last year takes account of non-cash depreciation costs of €1.7m. The firm's cash funds decreased from €2.61m to €2.07m.
Reporting by Gordon Deegan
