A buoyant market and the strength of sterling should mean strong results from Ryan Hotels next week. Brokers are expecting pre-tax profits of £4.6 million, up from £4 million with earnings per share forecast of 5.9p to 6.1p.

With five hotels in Ireland, the company is benefiting from the strong economy and rising tourist numbers, while sterling strength is pushing up the short-term breaks business from Britain.

The performance of Ryan's three hotels in Europe should have improved in the year to end January helped by improving local economies and lower airfares into Europe.

Overall, the company should have increased occupancy of its 1,044 rooms it was around 75 per cent last year and to have increased income per room. About 60 per cent of revenue comes from rooms.

Ryan shares have risen by slightly more than 53 per cent since the beginning of the year helped by speculation of a possible bid from the Doyle hotel group which could use Ryan as a quick route to a stock market quotation.

Trading at a 20 per cent discount to Jurys, the shares look to have more room for improvement for a number of reasons: A property revaluation is in prospect the last one was in 1995 the shares with a market capitalisation of £66 million are among the few quoted companies which qualify for inclusion in Special Portfolio Investment Accounts and new rooms (100) and corporate facilities are being added to the Gresham in Dublin to take advantage of the buoyant market.