THE number of bodies occupying bedrooms is invariably used as a crude yardstick of success in the hotel business. Publicly quoted Ryan Hotels takes the view that occupancy rates alone do not guarantee a thriving business and that enhanced profitability comes from rates paid by premium customers.

The strategy to lessen dependence on bread and butter income, such as tour groups and other block booked business and to move upmarket has paid off handsomely for the group headed by Conor McCarthy. Annual results this week show pre tax profits surging 43 per cent to £2.8 million - a creditable performance as turnover only increased 7 per cent to £26.6 million. Although occupancy rates eased 3 per cent to 77 per cent the group's overall room yield from its hotels in Ireland and continental Europe widened 13 per cent to £53 per room.

A major development programme is proposed for the Gresham Hotel which could cost around £6 million. Ryan could part finance costs from revenue reserves which last year grew 55 per cent to £5.2 million.

Shareholders' return on capital invested is dividends of 1.5p a share and a firmer share price, up 3.5p at 39p, a high for the year.