Business

Gresham Hotel profits fall by a third

The company paid a dividend of €3.9m last year following a barren 2022

At the end of the year, the company had assets of €62.4 million. Photograph Nick Bradshaw

Colin Gleeson
Fri Jun 28 2024 - 11:03

Profits at the Gresham Hotel on O’Connell Street in Dublin fell by a third last year, newly filed accounts show.

The accounts for Gresham Hotel Company, which cover the year ended December 31st, 2023, show the group made a profit of just over €4 million last year, which was down from €6.1 million in 2022.

At the end of the year, the company had assets of €62.4 million, which were up from €60.6 million the year before. It had liabilities of €7.6 million, which were up from almost €6 million the year before.

The company paid out a dividend of €3.9 million for the financial year. There was no dividend in 2022.

READ MORE

Turnover for the year amounted to €23 million, down marginally on the €23.3 million it generated a year earlier. Analysis of the turnover shows room sales accounted for €18.9 million of the hotel’s income, while bar and food sales amounted to €3.7 million.

Among the risks to the company highlighted by directors were “brand reputation”, which they said was “a key factor in the attraction and retention of customers and to our commercial operations”.

“Erosion of the brand through either a single event or series of events could adversely affect our position with customers and ultimately affect our future revenue and profitability,” they warned.

Jack Chambers: what to expect from the youngest Minister for Finance since Michael Collins

Listen | 35:34

They also said revenue was “sensitive to economic conditions in the markets in which we operate and is further affected by increased competition”.

They said employee costs were “significant” to the company. “We try to keep our employees as fully informed as practicable about developments within the business,” they said. “A breakdown in employee relations could adversely affect business performance.”

The company employed 277 people last year, which was up one on the previous year. Its total employee costs were just over €8 million in the year, up markedly on the €7.6 million bill the year before.

The number of foreign visitors arriving into Ireland increased 8.5 per cent last month, though they spent less time in the country, according to the latest Central Statistics Office figures.

There were 622,300 foreign trips made to Ireland, up from 573,300 in May last year. The total amount they spent was €810.6 million, an increase of 29 per cent on May 2023.

Almost half of all visitors to Ireland stayed in a hotel, or 311,900 in total. This was significantly up on the 234,000 who used hotels in 2023.

Colin Gleeson

Colin Gleeson

Colin Gleeson is an Irish Times reporter

LATEST STORIES