Amaris Hospitality Group Records €50m Operating Profit
Amaris Hospitality, the group that operates Jurys Inn and other hotels in Ireland and the UK, has recorded an operating profit of £44.6 million (€50.6 million) for 2016, with revenues rising 15% to £453.1 million.
However, finance costs of £151 million meant that last year's operating profit actually ended up transforming into a pre-tax loss of £106 million. This combined with an income tax credit resulted in a loss of close to £95 million for Amaris last year, as reported by The Irish Times.
The group expressed its satisfaction at securing a strong underlying performance despite the loss, referring to 2016 as a "transformative year" for its business. The £44.6 million operating profit was up from a £31 million operating loss in 2015.
The Dublin-based Amaris Group is owned by American private equity firm Lone Star and currently operates a total of 74 hotels. According to the group's chief executive, John Brennan, the drop in the value of the British pound is "driving an influx of tourism and spend into the UK", where most of Amaris's hotels are located.
It was announced in November that Swedish hotel group Pandox is on track to acquire the Jurys Inn business from Lone Star, who asserted that growth continues to be strong among Jurys Inn venues, with revenues rising 38% to £211.3 million in 2016.
Additionally, Amaris accounts indicate that £35.9 million of turnover at the group's Hilton Garden Inn in Dublin comes from the Republic. This figure represents a rise from £25.3 million in 2015.