iNua Hospitality Plc, a key hotel group in Ireland, reported that the bounce back of the hospitality industry after Covid-19 went above and beyond projections, despite a marked growth in expenses. The group runs eight out of 20 iNua venues throughout Ireland. In 2022, its accounts indicate a 60% increase in total revenue across its hotels, with the five-star Muckross Park Hotel & Spa as a notable performer. Following a slump to €22 million in 2020 due to pandemic-induced closures, their earnings rose to approximately €68.3 million in 2022, a figure that surpasses pre-Covid earnings and is a significant increase from around €42.7 million in 2021.
Despite this striking revival, the group, established by Paul Fitzgerald and Sean O’Driscoll through a management buyout of iNua in early 2020, experienced a loss of roughly €3.9 million in 2022. The deficit, reduced from €5.9 million in 2021, was attributed to an abrupt increase in operating and administrative costs over the year. Among other causes, iNua amplified its workforce significantly, adding over 250 jobs to reach a total of 1,359 employees for the year, leading to a 40% increase in payroll costs to €23.4 million.
The partners expressed a sense of optimism across the hotel industry as they entered 2022. They mentioned that their performance over the year exceeded highly positive projections, declaring 2022 a prosperous year for their business. However, they also observed that this solid performance was counterbalanced by the sharpest rate of cost inflation in over 40 years. They noted that energy and food costs have surged due to the conflict in Ukraine, which began after inflation had already set in. They also highlighted significant wage increases and ongoing labour shortages in western economies.
The board members emphasised that energy expenses are a significant price factor for the firm. They stated that measures promoting energy efficiency are being implemented. Mr O’Driscoll informed the firm last October that there had been a decrease in energy bills by around 20-30% in 2023, from a peak of approximately €4 million in 2022 – a figure twice as high as those recorded before the pandemic.
In the previous year’s last month, the team finalised the purchase of the Radisson Blu Hotel located in Belfast for an undisclosed amount, in collaboration with Warren Private. The premises are expected to be renovated and rebranded as the Gasworks Hotel, which is slated to commence operations later in the present year.
Furthermore, in 2023, Mr O’Driscoll and Mr Fitzgerald wrapped up a financial restructuring agreement on a section of the group’s portfolio. They expect this agreement to generate funds for renovating the corporation’s properties.