Increase in revenues sees Merrion Hotel post €1.39m pretax profit

ONE OF the best-known five-star hotels in the country, the Merrion Hotel in Dublin, has reported a pretax profit of €1.39 million last year, up from €34,599 in 2010.

In earlier years the hotel reported losses of €568,640 in 2009 and €607,500 in 2008.

The latest pretax profits followed revenues at Hotel Merrion Ltd increasing by 12.45 per cent from €13.63 million to €15.32 million in the 12 months to the end of October 31st last year.

The boost in the hotel’s fortunes coincided last year with the US administration choosing the hotel to accommodate President Barack Obama during his brief Irish visit.

Mr Obama and his wife checked into the Merrion Hotel but did not stay the night as planned because of their early departure from the country due to the ash cloud disruption.

The hotel, located near Government Buildings, comprises 123 rooms and 19 suites and guests can pay €250 for a standard room to €2,695 for the penthouse suite. The hotel offers various deals on its advertised rates.

The pretax profit also takes into account non-cash depreciation costs of €114,430 last year – much lower than the €535,266 in depreciation charged in 2010.

The Merrion Hotel is controlled by businessman Lochlann Quinn, Glen Dimplex founder Martin Naughton and the Hastings Hotel Group, the Northern hotel company controlled by Billy Hastings.

The profit last year resulted in the company reducing its accumulated losses to €1.1 million with net liabilities of the same amount.

The figures show the numbers employed by the hotel increased last year from 231 to 257 and staff costs, including directors’ pay, increasing from €6 million to €6.2 million. The figures show the hotel’s cost of sales last year increased from €8.4 million to €8.9 million with administrative expenses decreasing from €5 million to €4.9 million.

The company recorded a post-tax loss of €28,535 in 2010 after a tax charge of €63,134.

The firm’s post-tax profit last year totalled €1.32 million after paying tax of €67,543.

The figures show the company’s operating profit increased 24-fold from €57,207 to €1.4 million.

Interest payments totalling €23,408 reduced the company’s profits.