Doyle Collection hotel group sees profits rise by 13.5% to €126.5m

Earnings at the Doyle Collection hotel group last year climbed by 66 per cent to €35.2 million as revenues jumped by 13.5 per cent to €126.5 million.

One of Ireland's largest hotel groups, last March it renegotiated its €300 million-plus bank loans with AIB in one of the biggest refinancings of corporate debt here for some years.

During the year, the group disposed of three of its US hotels for a combined total of €149.5 million.

The group had bank loans totalling €323 million at the end of December last and the group’s net debt was due to be repaid in November of this year with the group now extending this out to 2017 with the State-controlled bank.

Consolidated accounts for holding firm Pembase Holdings Ltd show that revenues at the hotel group last year increased by €15 million to €126.5 million.

The accounts show that the group’s earnings before interest, tax, depreciation and amortisation increased from €21.2 million to €35.2 million last year. The group recorded a total profit of €65.48 million for the year and this arose mainly from a surplus on revaluation of the group’s hotels of €80.2 million.

It operates the Westbury and Croke Park hotels in Dublin; the River Lee Hotel in Cork along with four hotels in the UK and the Dupont Circle hotel in Washington DC.

The group’s assets at the end of 2012 had a book value of €635.5 million.

This year it has disposed of the Back Bay hotel in Boston, the Courtyard by Marriott and the Normandy Hotel in Washington DC and details of the transactions will be included in the 2013 accounts.

The directors state that on the basis of the renegotiated bank terms, they are satisfied that the group has adequate resources to continue to operate for the foreseeable future.

Its gross profit last year increased by 16 per cent to €89.9 million with operating profits increasing almost three-fold to €22 million.

Bank interest payments totalling €12.4 million contributed to the group recording a pre-tax profit of €10.6 million. This compared to a pre-tax loss of €2.5 million in 2011.

The accounts show that the group’s shareholder funds last year totalled €295.2 million.

Numbers employed by the group last year increased from 1,071 to 1,178 with staff costs increasing by 16 per cent to €44.28 million.