Hotel operator Jurys Doyle said pre tax profit fell 13 per cent last year but that it was "cautiously optimistic" for 2004, predicting modest profit growth.
Jurys said that while its operations in Britain and the US recovered well following a poor start to 2003 - caused largely by the war in Iraq - business in Ireland remained difficult.
"The UK was strong and the hotels in the United States have performed reasonably well, but Ireland is the weaker of our three markets," chief executive, Mr Pat McCann, said.
Describing the results as "satisfactory", he said a downturn in bookings for conferences and corporate events had hit business at its four-star and five-star hotels, while trade at the smaller, lower-priced Jurys Inns had been good.
Jurys said its pre-tax profit was €45.8 million in the 12 months to the end-December on a turnover of €253.8 million.
Today's results were slightly below market expectations, and Jurys said that at an operating level they had been dented by the euro's appreciation against both sterling and the dollar.
The group said it had plans to build a new 250 bedroom Jurys Inn in Nottingham in Britain. The hotel will cost €28.5 million and will open in late 2005.