Profits and revenues surge at Dublin's Gresham Hotel
Gordon Deegan
Pre-tax profits at the four-star Gresham Hotel last year increased by 46 per cent to €6.69 million, as the business benefited from the buoyant hotel market in the capital.
New accounts show that pre-tax profits at Gresham Hotel Company Ltd, which operates the Riu Plaza The Gresham Dublin on Dublin’s Upper O’Connell Street, increased sharply as revenues surged by 20 per cent from €23 million to €27.57 million.
The hotel was purchased by Spain’s RIU Group for €92 million in 2016, and the investment continued to pay off last year for the RIU Group as the Gresham hotel firm paid out dividends of €5.55 million, and this followed a dividend payout of €3.9 million in 2023.
In their report, the directors state that “the actual results for the year are consistent with performance expectations”.
A breakdown of revenues shows that the main driver behind the revenue surge was income from room sales rising by 21.5 per cent from €18.9 million to €22.97 million.
Revenues from bar and food sales at the hotel firm last year increased by 10pc from €3.73 million to €4.1 million.
The company’s revenues were also made up of €407,671 in rental income and €86,257 in ‘other income’.
The hotel firm increased its pre-tax profits despite non-cash depreciation costs rising from €1.75 million to €2.43 million and €2.09 million in management services costs charged by fellow affiliates.
At year's end, that hotel firm’s shareholder funds totalled €55.1 million, which included accumulated profits of €45.7 million. Cash funds increased from €694,213 to €913,285.
The directors state that they were satisfied “with the level of retained reserves at year end”.
Numbers employed declined from 277 to 271 as staff costs rose by €1 million from €8.01 million to €9.05 million.
The company recorded a post-tax profit of €5.84 million after incurring a corporation tax charge of €849,913. The company’s tangible assets had a book value of €59.8 million at year-end.
The jump in revenues and profits at the Gresham hotel contributed to overall revenues of €4 billion at the RIU Group in 2024, which was an increase of 13 per cent on 2023.
The group welcomed 6.7 million guests into their hotels in 2024, recording an overall average occupancy rate of 89 per cent.
At the end of 2024, RIU operated 98 hotels, which are located in 21 countries and staffed by a total of 38,055 employees.
Coinciding with the boost provided to the Thailand tourist economy by the third series of White Lotus filmed there, the RIU Group is currently constructing its first hotel in Thailand, the hotel Riu Palace Phuket and it is due to open next year.
