The group that owns the landmark Gresham Hotel on O'Connell Street in Dublin reported an operating profit of €3.4 million last year, up on the €1.8 million recorded in 2013 as turnover rose from €17.2 million to €18 million.

Precinct Investments, owner of the Gresham Hotel Group, which also previously included the Metropole in Cork city, said sales rose 5 per cent in 2014 with earnings before interest, depreciation and redundancy costs rising to €3.9 million, up 34 per cent from €2.9 million in 2013. The group reported a pretax loss of €1.75 million, as against a €6.5 million profit the previous year on the back of the removal of an impairment in the value of hotel property included in 2013, which amounted to €9.6 million.

Positive cashflow

Cashflow from operations was positive in both 2012 and 2013 and is expected to remain so this year. Precinct said trading to date in 2015 has been very strong and is outperforming the last years.

“The year under review saw an improvement in trade with the hotels continuing to perform ahead of their competitive set, and benefiting from an overall upturn in the hospitality sector, particularly in Dublin. The upturn in revenues was also achieved against a background of a continuous cost-containment programme which greatly benefited profit conversion,” the company’s directors said in a statement included with the latest set of accounts.

In common with a number of other Irish hotel groups, Precinct’s borrowings were previously transferred to the National Asset Management Agencyand the group is operating in accordance with a business plan agreed with the agency.

Earlier this year it was reported that Nama was preparing to bring the Gresham to market. The hotel, which was built in 1817 and has more than 300 rooms, was previously valued at €48 million. However, it is now believed the property could sell for considerably more.