Gresham Hotel posts pretax profit of €1.57m for 2021

Revenues at O’Connell Street hotel increased 38 per cent from €5.6m to €7.78m

The four-star Gresham hotel on Dublin’s O’Connell Street last year recorded pretax profits of €1.57 million.

The Gresham Hotel Company Ltd returned to profit after revenues increased by 38 per cent from €5.6 million to €7.78 million in the 12 months to the end of December last.

However, during the hotel’s second Covid-19-impacted year, revenues remained some way off the pre-pandemic revenues of €21.19 million recorded in 2019.

The pretax profit of €1.57 million last year followed pre-tax losses of €1.53 million in 2020.

The firm only recorded the pretax profit in 2021 after receiving Covid-19 wage subsidy scheme payments of €2.7 million last year which appear as “other operating income’” on the company’s profit and loss account.

The company received Covid-19 wage subsidy payments of €715,688 in 2020.

The firm did not pay out a dividend last year after paying dividends of €6.1 million in 2020 to parent firm Ryan Travel Holdings Ltd.

Non-cash depreciation

The pretax profit for 2021 takes account of non-cash depreciation costs of €1.56 million.

At year end, that hotel firm’s shareholder funds totalled €48.5 million that included accumulated profits of €39.13 million.

The directors state that they were satisfied “with the level of retained reserves at year end”.

A breakdown of the firm’s revenues show that room sales increased from €4.15 million to €6.15 million, while bar and food sales increased from €1.33 million to €1.54 million.

Numbers employed increased from 188 to 205 as staff costs rose from €3 million to €3.3 million.

The hotel was purchased by Spain’s RIU Group for €92 million in 2016

On the company’s capital commitments, the accounts reveal that the Gresham Hotel Company Ltd had committed to paying €2.8 million for building works.

The net book value of the company’s fixed assets last year increased to €51.1 million and included €2.23 million under the heading of assets under construction.

The company’s cash funds increased from €1.26 million to €2.3 million during 2021.

Gordon Deegan

Gordon Deegan

Gordon Deegan is a contributor to The Irish Times