Doyle Collection hotels increased turnover by €2m last year

Improved performance came in spite of impact of weak sterling and dollar on accounts

The Westbury Hotel in Dublin, part of the Doyle Collection. Photograph: Dara Mac Dónaill

The Westbury Hotel in Dublin, part of the Doyle Collection. Photograph: Dara Mac Dónaill

 

The Doyle Collection, which owns a number of luxury hotels in Ireland, the UK and Washington DC, increased its turnover by €2 million last year in spite of the impact of sterling and dollar translations on its euro-denominated accounts.

Figures for Doyle Hotels (Holdings) Ltd show that the group recorded turnover of €135 million last year, up from €133 million in 2015.

This was in spite of the impact of sterling’s decline against the euro post the Brexit referendum result in June 2016, and a weaker dollar. Some 44 per cent of the Doyle Collection’s revenues are sterling related, reflecting its ownership of three hotels in London (the four-star Kensington, Marylebone and Bloomsbury hotels) and a property in Bristol.

Some 19 per cent of its revenues are generated from its Dupont Circle hotel in Washington DC. Its hotels in the Republic, comprising the five-star Westbury Hotel in Dublin, the Croke Park Hotel and the River Lee in Cork, generated revenues of €49.3 million.

“The fall in value of the British pound against the euro has resulted in the euro-reported trading profits and earnings reducing year-on-year, albeit the group is well hedged in cash-flow terms from fluctuations in foreign exchange rates,” the directors’ report noted.

The accounts also show that the hotel group’s after-tax profit fell last year to €5.6 million from €31.1 million in 2015. This was due to the impact of a revaluation of its properties.

Its operating profit from continuing operations reduced to just under €15 million from €52.7 million in 2015.

The directors’ report stated that its Ebitda (earnings before interest, tax, depreciation and amortisation) was unchanged year-on-year at €26.3 million. Shareholder funds reduced to just under €292 million from €330 million a year earlier.

New loan facility

The accounts also note that the Doyle group entered into a new loan facility with its bankers with terms out to July 2026. Its loans amounted to €236.5 million at the end of last year, of which about €216 million was due to be repaid in 2026.

The group employed on average 1,268 people last year, up from 1,187 in 2015. Its total payroll costs rose by almost 6 per cent to €47.3 million. Directors’ remuneration increased to €1.2 million from €958,000 previously.

Commenting on trading in the current year, Patrick King, the Doyle Collection’s group chief executive, said: “Trading in 2017 has been positive. The group has benefitted from a strong return on its recent investments in its restaurants and bars.

“In addition, the weaker pound is leading to more inbound travel to the UK and we are also seeing a greater amount of UK domestic tourists visiting London rather than going abroad, again due to the weak currency. There is also plenty of evidence that corporates are continuing to travel to London as a key global business destination.

“Capital investment in our hotels has continued this year. In London, we are about to re-launch the Bloomsbury, following a transformation of its ground floor, which will include the opening of the new Coral Bar.

“In the Marylebone, we have transformed the social, meetings and events spaces. Other recent projects include the re-opening of Wilde Restaurant and the Sidecar bar in the Westbury.”

The Doyle Collection comprises eight hotels and is owned by members of the Doyle and Beatty families. It traces its roots back to a company founded by well-known Irish hotelier PV Doyle.