Fitzpatrick looking out for third hotel property to buy in New York city

IRISH HOTELIER John Fitzpatrick is considering buying a third property in New York following a strong profit performance by his hotel group in 2008.

Speaking to The Irish Timesfrom his base in New York, Mr Fitzpatrick said: "We are looking at two or three properties and are just waiting for the right price. But it has to be the right deal. This is a buyer's market and we won't be rushed into anything."

Mr Fitzpatrick declined to name the properties that he is eyeing but said they were in the midtown area of Manhattan and would have 150-200 bedrooms each.

"It has to have more than 100 rooms to make it worthwhile," he said. "I would like to do a deal before the end of the year but it would have to be at the right price."

Mr Fitzpatrick said he did not envisage any difficulties sourcing funding in spite of the current credit crunch. "Our loan-to-value ratio is still very low," he said. "It is 30 per cent or so . . . there's plenty of room to raise more debt if needed."

Mr Fitzpatrick already owns the 91-bed Manhattan hotel and the 155-bed Grand Central property in New York.

He has just completed a $7 million refurbishment of the Manhattan and is planning to spend $3-4 million upgrading the Grand Central in 2009.

"We've basically got a new hotel at the Manhattan now and the plan is to move to the Grand Central and refurbish the rooms there."

The Irish businessman said his Fitzpatrick Hotels group, which he wholly owns, would report strong double-digit profit growth for the 12 months to the end of September 2008.

He expects the company's operating profit to rise by about 10 per cent to $7.9 million with its pre-tax profit increasing by 33 per cent to $6 million.

Accounts just filed for Fitzpatrick Hotels show that it made a pre-tax profit of $4.5 million on turnover of $24.9 million in the year to the end of September 2007.

The hotel group's occupancy rate this year has averaged at about 85 per cent, Mr Fitzpatrick said, with Irish people accounting for about 40 per cent of his business.

"Due to the weak dollar, a lot of Irish people and Europeans have come to New York this year and the market remains strong," he said.

Mr Fitzpatrick said the company achieved an occupancy rate of 92 per cent in July and business in August was brisk. "The big question is January and February, which are quiet months but I think we're looking strong."

Mr Fitzpatrick was recently reappointed for a second two-year term as chairman of the Hotel Association of New York City.