Killiney’s Fitzpatrick Castle Hotel records profit but revenue still down

Historic hotel had pre-Covid revenues of €7.2m in 2019, and expects ‘significant recovery’ in 2022

The four-star Fitzpatrick Castle Hotel in Killiney, owned by one of the best-known family names in the industry, last year returned to profit.

The 18th-century hotel is run by Eithne Scott-Lennon, daughter of the late Paddy Fitzpatrick, who opened the hotel in 1971.

Ms Scott-Lennon’s brother, John Fitzpatrick, runs two Fitzpatrick hotels in New York.

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Accounts filed by Emdora Ltd, which operates the 113-bedroom hotel, show that the business recorded operating profits of €288,872 in the 12 months to the end of September last. It recorded an operating loss of €351,272 in 2020.

A directors’ note with the accounts said that they were “pleased that despite a number of months of enforced closure, restrictions and staffing shortages, the hotel managed to maintain revenues at a profitable level, reporting an operating profit for the year”.

“It is expected that in 2022 there will be a significant recovery, across all areas of the business, of revenues lost due to Covid-19. The hotel undertook a small number of key capital expenditure projects during the year. More significant capital expenditure will resume in 2022 with a programme of works across all areas of the business,” the note said.

Addressing the impact of Covid-19, the note said that “the measures taken by management including reducing costs, availing of Government and bank support has resulted in the impact of the restrictions being minimised and the group reporting an operating profit for 2021″.

The business returned to profit as revenues declined by €1.053 million or 27 per cent from €3.93 million to €2.88 million. In 2019, the business enjoyed revenues of €7.2 million.

The company had “other operating income” last year of €1.46 million that included Government grants of €1.35 million.

The operating profit takes account of non-cash depreciation costs of €593,866. The company recorded a modest pretax profit of €8,729 after interest costs of €280,143.

Staff numbers reduced from 100 to 80 as costs declined from €2.08 million to €1.85 million, which included directors’ pay of €277,701.

At the end of September last, the company had shareholder funds of €4.66 million. Cash funds totalled €1.1 million.