Westbury hotel owner’s revenues up 18% but costs pose ‘significant headwinds’

The Doyle Collection hotel group’s operations in Ireland, the United States and the UK each recorded double-digit increases in revenues last year, against a backdrop of a sharp increase in its costs.
Latest accounts for Doyle Hotels (Holdings) Ltd show that group turnover rose to €173.8 million from €147.7 million in 2022, an increase of 18 per cent. This was described in the directors’ report as a “steady growth in trade”.
Revenues at its three Irish hotels – the five-star Westbury and the Croke Park hotel in Dublin, and the river Lee in Cork – rose by 15 per cent to €59.7 million. In the UK, where it has three hotels in London and one in Bristol, its turnover increased by 16 per cent to €76.5 million while the Dupont Circle property in Washington DC recorded a 29 per cent uplift to €28.6 million.
However, there was also a double-digit rise in its costs. The hotel group’s cost of sales was €138.8 million, up 11 per cent on 2022, while its administrative expenses were €6.1 million, a rise of 25 per cent on the previous year. Total operating costs last year were €144.9 million, up from €129.5 million.
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The group’s trading Ebitda (earnings before interest, tax, depreciation and amortisation) was €28.9 million, up €8 million year on 2022. But its pretax profit declined to €13.5 million in 2023 from €27.9 million a year earlier.
This reflected the impact of a net reversal of an impairment charge on the value of its hotel properties of €27.4 million in 2022. The equivalent figure for last year was €4.3 million.
In a statement to The Irish Times, Bernie Gallagher, chair of the Doyle Collection, warned of the impact of higher costs in Ireland on the hospitality sector. “The cost of doing business in Ireland remains a challenge for the hospitality sector. Rising costs in food and beverage, together with broader inflation, created significant headwinds throughout the year.
“Outside of Ireland, we have experienced notable rate growth, driven by our prime locations and the substantial capital investment in our hotels in London and Washington DC. This year, we are continuing to experience a solid trading performance.”
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The accounts show an uplift in asset values of €13.2 million. Its land had a book value at the year end of €324 million, up from €309 million. The hotel group paid interest of €10.1 million last year, unchanged on 2022.
In terms of capital expenditure, the Doyle group invested €9.4 million in 2023, having spent €30 million over the three years to 2022. This included a makeover for 41 bedrooms, including five new suites, at the Westbury Hotel.
The Doyle Collection is owned by members of the Doyle and Beatty families and traces its roots back to a company founded by well-known Irish hotelier PV Doyle. No dividend was paid to shareholders last year.