The Irish hospitality sector’s post-Covid recovery exceeded all expectations, according to the operators of the iNua hotel company, leading to a notable rebound in business levels throughout 2022 despite rising costs.
Newly filed accounts for iNua Hospitality Plc, a holding company in the group that operates some eight of iNua’s 20 venues dotted across the Republic, show the five-star Muckross Park Hotel & Spa operator enjoyed a 60 per cent bounce in turnover across its portfolio in 2022. After plunging to €22 million in 2020 when the sector was effectively shuttered by the pandemic, revenues approached €68.3 million in 2022, above pre-Covid levels and up from close to €42.7 million in 2021.
However, the group – founded by Paul Fitzgerald and Sean O’Driscoll through a management buyout of iNua in early 2020 – lost some €3.9 million in 2022, down from €5.9 million in 2021, mostly due to a sharp rise in operating and administrative expenses in the year. In particular, iNua beefed up staffing in the year, adding more than 250 jobs to bring its headcount to 1,359 for the full year, leading to a 40 per cent jump in its wage bill to €23.4 million.
In the directors’ report attached to the accounts, Mr O’Driscoll and Mr Fitzgerald said there was a feeling of optimism across the hospitality sector as 2022 began. “As it transpired, our performance in 2022 exceeded even the most optimistic of expectations, with 2022 being a very successful year for the business,” they said.
However, they added: “This strong performance was against the backdrop of cost inflation in 2022 that has not been seen for over 40 years. Inflation was taking hold before the outbreak of war in Ukraine, but that conflict has triggered a huge increase in energy costs, a large rise in food prices and other input costs, as well as significant increases in rates of pay. In addition, there continues to be shortages of labour across all western economies.”
[ Management acquire operating arm of Irish hotel chain iNuaOpens in new window ]
The directors particularly highlighted energy costs as a “major cost factor” for the group and said they are putting energy-efficient cost strategies in place. Last October, Mr O’Driscoll told The Irish Times the group’s energy bills plunged by 20-30 per cent in 2023 after peaking at about €4 million in 2022, double the pre-Covid level.
Last December, the group completed the acquisition of the Radisson Blu Hotel in Belfast for an undisclosed sum, in partnership with Warren Private. The venue is to be refurbished and rebranded as the Gasworks Hotel, opening later this year.
Also in 2023, Mr O’Driscoll and Mr Fitzgerald completed a refinancing deal on part of the group’s portfolio that they said will help fund the refurbishment of the group’s assets.
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