THE TWO Fitzpatrick hotels in New York made a pretax profit in 2010 of just under $2.1 million (€1.46 million), according to accounts supplied to The Irish Times.
This was 22.6 per cent below the previous year and reflected the effects of the economic slowdown, higher labour costs and a refurbishment of 25 rooms at its Grand Central hotel, which displaced about $250,000 in room revenue.
The accounts show that turnover was flat at $21.7 million at Fitzpatrick Hotels Ltd for the year to the end of September 2010.
The Fitzpatrick Manhattan and Fitzpatrick Grand Central hotels are owned by well-known Irish hotelier John Fitzpatrick.
Mr Fitzpatrick said business this year had rebounded. He expected turnover to rise by 6 per cent and pretax profit to increase by 25 per cent.
This reflects a recovery in the corporate market and the staging in the city of some major events, including the World Fire Police Games, which begin on August 26th and will involve 20,000 competitors.
This has been timed coincide with the 10th anniversary of the September 11th, 2001, attacks.
“We’re looking at a strong finish to the [financial] year,” Mr Fitzpatrick said. “All of the other hotels in the city are doing well too.”
He said the company achieved a room occupancy rate of 90 per cent in its last quarter.
Mr Fitzpatrick has spent about $11 million refurbishing the two hotels in recent years. “Both of them are now well positioned for the upturn in the market,” he said.
Fitzpatrick Hotels received a major marketing boost recently when Travelocity, one of the world’s largest travel companies, named the Grand Central property in its top-10 list of New York hotels identified by customers.
The accounts show that Fitzpatrick Hotels’ cost of sales rose last year by 5.4 per cent to $8.7 million. Its administrative expenses rose marginally to $10.2 million.
The rise in costs were driven by union wage and benefit increases; payroll tax rises; and increases in New York real-estate taxes.
Fitzpatrick employs 160 staff at its two hotels. Total staff costs last year rose to $9.6 million from $9.4 million in 2009.
The company booked an operating profit in 2010 of $2.8 million compared with €3.4 million a year earlier. Its interest income declined to $300,000 last year from $550,000 in the previous 12 months. But its interest charges fell by a quarter to just shy of $1 million.
Fitzpatrick Hotels paid $360,000 in corporate taxes compared with $600,000 in 2009.
A dividend of €240,000 was paid by the company – $20,000 less than in the previous year.
Fitzpatrick Hotels closed the financial year with net assets of $33.5 million. Its net debt stood at $47.6 million.
The New York hotels are wholly owned by Mr Fitzpatrick.
The Fitzpatrick Castle Hotel in Killiney, Co Dublin, is owned by his sister Eithne.