Revenue at the Leonardo chain of hotels, formerly Jurys Inn, last year more than doubled to €48.32 million, as the business recovered from the Covid impact on the tourism industry.
Accounts filed by Fattal Leonardo Operation (Ireland) Ltd – formerly Fattal Jurys Operation (Ireland) Ltd – show that the 128 per cent surge in revenue from €20.29 million to €48.32 million resulted in the business returning to profit to record pretax profits of €4.18 million.
The profit last year takes account of a non-cash write-off of €8.49 million, as the business changed its brand from Jurys Inn to Leonardo in the UK during 2022.
In a note with the accounts, the directors said they deemed it appropriate to write off the brand intangible on December 31st last as all franchise fee income generated by the company ceased upon the UK hotels’ rebrand.
The firm’s franchise fee income in 2022 was €7.6 million, a 50 per cent rise on franchise income of €5.059 million in 2021.
The rebranding of the Irish operation took place this year and the move brings to an end an association between the Jurys name and Irish hotels that dates back to 1839.
The entire Jurys Inn portfolio was acquired by the Fattal Hotel Group, which is owned by Israeli billionaire David Fattal, in 2017.
The business operates five Leonardo hotels in “prime city locations” in the Republic and Northern Ireland, including Leonardo hotels in Dublin, Cork and Galway.
The note said last year’s results were “primarily driven by the global market’s general trend of recovery from Covid-19″.
The accounts said health and travel restrictions imposed were lifted during the year “which in turn resulted in strong domestic demand and occupancy, with the market activities returning to pre-pandemic levels”.
The note said the business hotels have “a low-cost business model, charging its customers rates that vary depending on levels of demand”. This reduces, though does not eliminate, the financial impact arising from adverse economic conditions, the accounts said.
The firm’s operating profits increased almost eightfold from €660,000 to €5.17 million.
The company’s franchise income of €7.6 million offset by finance expenses of €8.59 million resulted in the pretax profit of €4.18 million.
Numbers employed increased from 347 to 405 during the year and staff costs more than doubled from €4.67 million to €11.37 million.
Pay to directors, including pension payments, increased from €288,000 to €302,000.
The profit also takes account of combined non-cash depreciation costs of €8 million.
At the end of December last, the firm had accumulated profits of €19.58 million, while its cash funds decreased from €1.05 million to €790,000.