Jurys Doyle profits increase 7%

Profits at Jurys Doyle Hotels grew by 7 per cent last year as solid performances in the US and the UK compensated for sluggish Irish trade.

The hotel group reported particularly good growth in the London and Washington DC markets, where it operates six properties.

The Jurys Inn brand also worked well for the company over the year and is on track to make an even bigger contribution in 2005.

Jurys chief executive Pat McCann announced yesterday that the group would open three new inns in Britain - in Milton Keynes, Brighton and Liverpool - by the end of 2007. When combined with existing plans for new sites, this will bring the total number of inns to 22.

Profit growth in 2004 came on turnover of €284.5 million, which was 12 per cent ahead of the previous year. Operating profits climbed by 17 per cent to €65.8 million.

Mr McCann said the past year had been one of progress on both the financial and strategic front. He said the outlook for 2005 was "broadly positive", with Jurys aiming for underlying increases in both turnover and profit.

The group announced a final dividend of 16.5 cent per share, bringing the total dividend to 24.9 cent per share, 5 per cent up on 2003.

The numbers came in broadly in line with market expectations, but Jurys shares still fell over the course of yesterday's session, closing 13 cent down at €12.44. The stock has been particularly strong over the past few months.

The biggest drag for Jurys last year came from its Irish hotels, where operating profits fell back by 10 per cent to €20 million as turnover dropped by 5 per cent to €94.2 million.

Mr McCann acknowledged that heightened competition had been a factor in the result.

The firm is in the midst of a review of its Irish portfolio, having already sold three properties and launched the redevelopment of its Cork hotel.

Most Irish interest over the next few months will focus on the group's options for its sizeable Ballsbridge site in Dublin, which covers three separate hotels and is currently the subject of an internal review.

Speculation has centred on the development potential that could be unlocked on the site which currently houses the Jurys Ballsbridge Hotel, the Towers and the Berkeley Court .

A major refurbishment of the nearby Burlington Hotel has already been approved by the board, while a new hotel at Croke Park should open in time for this year's All-Ireland finals.

When Irish inns are included, profits across the firm's properties in the Republic were down 3 per cent on last year at €17.1 million.

This stood in contrast to UK profits, which were ahead by 27 per cent at €40.9 million.

The US, meanwhile, delivered operating profits of €7.8 million, which were up 26 per cent on 2003, or 40 per cent, when currency effects are stripped out.

Mr McCann also signalled the group's interest in expanding its presence in both regions over the next few years.