Company behind Fitzwilliam Hotel grows profit tenfold as tourists return

The company behind the Fitzwilliam Hotel on St Stephen’s Green in Dublin saw its profits increase almost tenfold last year as occupancy levels and room rates rose with the return of tourists to the capital.

Accounts for 2022 filed with the Companies Registration Office show Ampleforth, which also owns the Bailey Bar on Duke Street in the city, made a profit of €3.4 million after tax, which was up from €355,813 in 2021.

The company also operates the Michelin-starred Glovers Alley restaurant on St Stephen’s Green, which is led by chef Andy McFadden.

Turnover at the group almost tripled from €5.5 million in Covid-hit 2021 to €15.8 million last year. Its gross profit was almost €14 million, which was up from €4.6 million. Net assets increased by 19 per cent to €72.9 million.

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The directors, who did not recommend the declaration of a dividend, said they were “pleased with the resilience demonstrated” by the group during and after the pandemic period.

“Results for the year show a significant increase in both turnover and operating profit compared to the two years affected by Covid-19 and this pays testament to the commitment of management and the workforce,” they said.

“Levels of international tourism during 2022 had not quite returned to pre-pandemic levels but occupancy levels and average room rates in Dublin continued to improve throughout 2022.

[ Five-star Conrad Dublin hotel returns to profit as Covid impact recedes ]

[ Shelbourne Hotel grows revenue by a third as visitors flock back to Dublin ]

“The directors expect overseas tourist numbers in 2023 to continue to show signs of growth and recovery approaching levels previously seen in 2019.”

The accounts show the group received €751,381 in Government supports last year, which was down from almost €1.9 million the year before.

It employed an average of 170 people in 2022, which was up from 106 in 2021. It spent €4.6 million on staff, up from €2.6 million.

Separately, the Mespil Hotel at Baggot Street Bridge in Dublin bounced back into profit last year after trading “improved significantly” due to the ending of Covid-19-related restrictions.

Accounts for the financial year ended September 30th, 2022, show turnover amounted to almost €11 million, up from the €1.8 million it generated in 2021.

It made a profit of €3.2 million as against a loss of €1.3 million the year before. The results show the hotel was in receipt of €700,234 in Covid-related supports from the Government, down from €818,477 in 2021.

The company’s total net assets were €23.6 million at year end, with net current assets of €1.8 million. Bank loans excluding overdrafts were just over €5 million at the year end, compared to almost €6 million in the prior year.

[ Dublin hotel room rates hit record daily high of €209 in May ]

[ Tourism boost drives growth in services in May ]

The company had net cash of €77,756 at the year end with “substantial” undrawn overdraft facilities available. No dividends were paid during the year or the prior year.

The company said trading since the year end has been “in line with pre-Covid activity”, but flagged interest rate increases and an overall reduction in economic growth as risk factors that could impact the hospitality industry.

It also cited “continued increases in operating costs”, as well as the risk of restrictions or a decrease in international travel due to Covid-19 as factors that could hurt trade.

The hotel sharply increased its headcount as restrictions were lifted last year, with the average number of employees rising from 41 to 124. The aggregate payroll costs amounted to €3.8 million, up from almost €1.5 million in 2021.