The Jurys Doyle hotel group has reported weaker profits in a difficult year but remains optimistic its business will show signs of improvement in the Autumn.
In the year to the end of April, the hotel group's profits declined to €51 million, down 8 per cent on the previous year. Jurys Doyle chief executive, Mr Pat McCann, blamed a combination of foot-and-mouth disease, the negative impact on tourism following the US terrorist attacks on September 11th, 2001, and slower economic conditions for the downturn.
The figures were in line with analysts' forecasts and the group's own indication earlier this year that it was experiencing a difficult trading environment .
Mr McCann said the company had delivered a "creditable performance" for the year. "The group performed very well in a very difficult year. We have achieved reasonable levels of profits and despite the upheaval we remain on track with our growth strategy," he said yesterday.
Earnings per share fell by 8 per cent to 70.5 cent. Shareholders will be paid a dividend of 21.9 cent per share, a 10 per cent increase on 2001.
Some 50 per cent of the group's profits were generated in the UK market, where it operates a number of hotels and budget-style Jury's Inns. The Irish market contributed 39 per cent and the US, where it operates three hotels, brought in 11 per cent of day-to-day profit.
Turnover rose by 6 per cent to €266.4 million during the year, with lower occupancy rates and tighter margins depressing profitability. During the 12 months the group's average occupancy rates were 5 per cent lower at 75 per cent, while the average room rate fell by €2 to €93. Demand for meeting rooms was strong while there was some improvement in margins on food and beverages served throughout the group.
Mr McCann said its four- and five-star hotels in Dublin, which include the Berkeley Court and the Towers at Jurys, were affected by the weaker economic conditions. Profits at its Washington hotel were down 7 per cent, but the group maintained UK profits.
The Inns made another solid contribution, accounting for six out of the group's top eight best performers in terms of occupancy rates during the year. The Jurys Inn in Birmingham was the second-highest earner across the group, with operating profits from the Inns up 23 per cent overall.
Jurys Doyle revalued its properties during that period which added a further €182 million to the value of its assets. It has been reviewing the range of hotels within the group and recently sold two, Jurys Skylon in Dublin and Jurys Waterford Hotel, for €14 million to Donegal hoteliers Brian and Sean McEniff.
Mr McCann said the group has no plans to sell any other hotels even though its continues to receive unsolicited offers for them.
