Sale costs push profits lower at hotel firm Tifco

EXCEPTIONAL costs at the Tifco hotel group last year contributed to pre-tax profits decreasing by 36pc to €3.5m.

New accounts filed by the hotel company show that it recorded the decrease in pre-tax profits as revenues increased marginally, to €37.42m from €37.24m last year. Numbers employed at the group last year increased to 324 from 316, and staff costs totalled €11.8m.

The exceptional costs arose from Tifco’s sale to US fund Apollo Global last year.

Tifco’s portfolio includes a management contract for the Clontarf Castle hotel in Dublin and freehold ownership of three Crowne Plaza properties.

In all, Tifco runs 24 hotels, some of which it owns, but many of which are operated under management contracts.

According to the directors’ report, they are satisfied with the performance of the company in the current year, which saw rising revenues due to an increased trading performance.

The directors stated: “Profits decreased in the year due to exceptional costs associated with the sale of the hotel group in October 2018.”

The directors stated that room rate continued to show strong growth and the revenue per available room (rev PAR) grew by 5pc. The profits last year take account of noncash depreciation costs of €2.9m and interest payments of €1.9m.

Directors’ pay increased to €678,707 from €480,900.

Shareholder funds totalled €104.8m, including accumulated profits of €5m. The firm’s cash pile totalled €1.5m.