Operating profits increase at FBD Hotels
Business pays out dividend of €3.63m
Faithlegg House Hotel in Waterford. “Faithlegg continued to make good progress and recorded a profit of €1.3m, which represents a profit of €16,000 per room ”
Operating profits at Irish group FBD Hotels and Resorts increased by 44 per cent to €8 million in 2019. Accounts for the group, whose properties include the Castleknock Hotel in Dublin and Faithlegg House Hotel in Waterford, show that revenues rose by 38 per cent to €73.4 million.
“Faithlegg continued to make good progress and recorded a profit of €1.3 million, which represents a profit of €16,000 per room, ” the directors’ report said and that his “was excellent and ahead of expectations”. The hotel opened a 52-bedroom extension in 2018 and upgraded its facilities.
The hotel chain purchased the 98-bedroom Heritage Hotel & Spa in Killenard, Co Laois, in January 2019 for €8.8 million, and the directors said the purchase represented a “good opportunity for strong returns in the medium term”.
The business paid a dividend of €3.63 million last year. It recorded pre-tax profits of €8.6 million, which was down sharply on the €22.7 million pre-tax profit in 2017.
The directors said earnings before interest, tax, depreciation and amortisation (Ebitda) was €12.6 million in 2018, 34 per cent ahead of the figure for 2017. They said this represents an excellent profit margin of 21.3 per cent, while group leisure revenue was up 10 per cent on the previous year at €54.4 million.
The largest part of the company’s business is in Spain, where €38.9 million in revenues were recorded, compared to €20.7 million in Ireland and €13.8 million in Germany.
The firm’s hotel business accounted for 74 per cent of business at €54.4 million, with property accounting for 25.5 per cent at €18.7 million and lease income the balance.
Staff numbers increased from 626 to 682, with employee costs increasing from €22.6 million to €24.8 million.
The hotel chain was sold by insurance group FBD in 2015, and has no link to the listed company in spite of using its brand.