Mespil profits hit €3.7m amid hotel boom

PRE-TAX profits at the four-star Mespil Hotel in Dublin last year went up by 50pc to €3.749m, as revenues increased sharply.

Enjoying the fruits of the hotel boom in the capital, revenues at the family-owned hotel firm last year increased by 20pc, going from €8.9m to €10.7m.

The directors state that, during the year, the company invested €428,701 in the hotel and that since year-end, the company has commenced a substantial upgrade of 106 of its four-star rooms to a higher standard.

The upgrade was due for completion in April of this year.

The directors state that the 20pc jump in revenues is reflective of the continuing recovery in the hotel sector and the substantial investment by the company in refurbishing the Mespil.

The directors also state that a dividend of €5m was declared to its parent company, Sligo Park Hotel Ltd.

The directors state: “This is both reflective of seeking to reduce intergroup balances and to assist that hotel in relation to a substantial ongoing upgrade of the hotel.”

They also state that the company has reduced its bank debts significantly over the period.

At the end of September last, the firm was sitting on shareholder funds of €21.65m.

Numbers employed last year increased from 76 to 82, with staff costs last year increasing from €3.3m to €3.49m.

Pay to directors last year increased from €569,438 to €604,512.

Separate accounts show that the Kidney family-owned sister hotel, the Sligo Park, enjoyed a good year with revenues increasing from €5.59m to €5.77m.

The business’s operating profits increased by 23pc, going from €€437,431 to €538,022.