Amaris ho­tel group makes ¤51m op­er­at­ing profit in 2016

The Irish Times - - Business News - LAURA SLAT­TERY

Dublin-head­quar­tered ho­tel group Amaris Hos­pi­tal­ity, which runs Jurys Inn and other ho­tels in Ire­land and Bri­tain, recorded an op­er­at­ing profit of £44.6 mil­lion (¤50.6 mil­lion) in 2016.

Rev­enues rose 15 per cent to £453.1 mil­lion dur­ing the year.

The 74-ho­tel group, owned by US pri­vate eq­uity group Lone Star, had fi­nance costs of £151 mil­lion, which trans­formed the op­er­at­ing profit into a pre-tax loss of £106 mil­lion. After an in­come tax credit, the re­sult for the year was a loss of al­most £95 mil­lion.

How­ever, the group said it se­cured a strong un­der­ly­ing per­for­mance in what it de­scribed as a “trans­for­ma­tive year”.

The op­er­at­ing profit of al­most £45 mil­lion com­pared to an op­er­at­ing loss of £31 mil­lion in 2015.

Amaris is led by chief ex­ec­u­tive John Brennan, the for­mer chief ex­ec­u­tive of Jurys Inn. It is head­quar­tered at the Ir­ish chain’s old Dublin of­fices, al­though the com­pany re­ports its earn­ings in ster­ling.

In a state­ment ac­com­pa­ny­ing the ac­counts, Mr Brennan said weaker ster­ling was “driving an in­flux of tourism and spend into the UK”, where the ma­jor­ity of its ho­tels are lo­cated.

Lone Star is in the process of selling the 36-strong Jurys Inn chain, with Swedish ho­tel group Pan­dox re­cently emerg­ing as the fron­trun­ner for the busi­ness.

The com­pany high­lighted “con­tin­ued strong growth” in the Jurys Inn busi­ness, which recorded a record five mil­lion guest stays dur­ing 2016.

De­mand from local and in­ter­na­tional busi­ness and leisure trav­ellers re­mained “very strong”, es­pe­cially for city cen­tre ho­tels, it said.

Some 237 rooms were added to the Jurys Inn port­fo­lio in 2016, help­ing these ho­tels in­crease rev­enues 38 per cent to £211.3 mil­lion.

“While there’s un­cer­tainty around the ul­ti­mate im­pact of Brexit, thus far, trad­ing per­for­mance has been very pos­i­tive,” Mr Brennan said.

The ac­counts show that £35.9 mil­lion of its turnover comes from the Repub­lic, up from £25.3 mil­lion in 2015.

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