New accounts filed by Fattal Leonardo Operation (Ireland) Ltd – formerly Fattal Jurys Operation (Ireland) Ltd – show the surge in profits coincided with revenues rising by 11pc to €53.48m.
The sharp increase in profits arose mainly from a €9.5m exceptional gain connected with ‘right of use’ assets held by the company undergoing a rent review last year that resulted in a revaluation.
The company operates six hotels in prime city locations across Ireland, including NYX Hotel Dublin Portobello that was newly opened in December 2023.
The pre-tax profits of €14.7m last year compared with pre-tax profits of €4.18m in 2022 – an increase of 252pc.
The directors stated that they are “satisfied” with the level of retained earnings.
The rebranding of the Irish operation took place last year and the move brought to an end an association between the Jurys name and Irish hotels that dates back to 1839.
The entire Jurys Inn portfolio was acquired by the Fattal Hotel group, which is owned by Israeli billionaire David Fattal, in 2017.
A note states that due to the rebranding of all the Jurys Inns hotels to Leonardo, no franchise fee income was received in 2023 by the company compared with €7.6m that was generated from franchise fee income in 2022.
The directors state that Leonardo Hotels’ “low-cost business model” reduces, though does not eliminate, the financial impact arising from adverse economic conditions.
The group recorded a gross profit of €35.5m and administrative expenses of €22.1m, reducing operating profits to €13.45m – down marginally on operating profits of €13.66m in 2022.
The €9.5m exceptional gain and €503,000 in other income was offset by €8.67m in finance expenses.
The profits take account of non-cash depreciation costs of €8.09m.
The firm recorded a post-tax profit of €14.14m after incurring a corporation tax charge of €609,000
Numbers employed increased from 405 to 495 during the year and staff costs increased from €11.37m to €13.72m.
Pay to directors, including pension payments, increased from €302,000 to €436,000, made up of €403,000 in remuneration and €33,000 in pension contributions.
At the end of December last, the firm had accumulated profits of €33.73m while its cash funds increased from €790,000 to €923,000.
Addressing the company’s going concern status, the directors said the company has sufficient resources to meet its obligations as they fall due. The company did not pay a dividend.