The resilience of its inns brand, a strong recovery in its US hotel operations and a good performance from its London hotels helped Jurys Doyle to return to profit growth in the first half.
After two half-year periods of profit decline, the hotel group announced a 2.5 per cent increase in pre-tax profits to €29.5 million in the six months ended October, in line with market expectations.
The group also recorded an exceptional profit of €1.08 million from the sale of two 3-star hotels, Jurys Skylon and Jurys Waterford, in July. If this is included, profits were up by 6 per cent to €30.6 million while turnover rose by 0.5 per cent to €138.6 million.
The firm, which operates 30 properties in Ireland, Britain and the US, will pay an interim dividend of 8.14 cents per share, a rise of 5 per cent on the previous year.
Although the inns and the overseas hotels turned in an improved performance, Jurys said its larger Dublin hotels continued to be affected by reduced corporate conference and incentive business.
Jurys chief executive Mr Pat McCann said there appeared to be some recovery in this market, however, and he was "cautiously optimistic" about the conference business in the year ahead despite the economic slowdown and the threat of war in Iraq.
Increased capacity on the north Atlantic air routes, as Aer Lingus launches a Baltimore route and US Air begins flights out of Philadelphia, should also help the US market to recover provided war does not break out, he said.
Overall, occupancy rates were up by 6.6 per cent to 83 per cent while the average room rate fell by 1 per cent to €93. Occupancy levels in the inns were strong with the Birmingham inn proving the second best profit performer in the group while the Croydon inn, which opened last February, contributed €1.5 million to operating profits. The inns now account for 37 per cent of operating profits and 29 per cent of turnover.
Jurys also confirmed plans to open a 253-bedroom inn on Parnell Street in Dublin in summer 2004. It will be financed by a 35-year operating lease with the developers, Shelbourne Developments. The firm expects increasingly to use operating leases, alongside full ownership of selected properties, to facilitate the speedy roll-out of new inns in Britain. But it ruled out entering into any sale and leaseback agreements on existing properties at the moment.
Jurys Doyle's next British inn will open in Newcastle in February followed by a further three inns in Glasgow, Leeds and Chelsea between autumn 2003 and spring 2004.
The group also plans to open a 225-bedroom four-star hotel in Boston in early 2004.
The six new properties under construction will add almost 1,500 bedrooms, a 25 per cent increase, to the group's current stock by the middle of next year.
Shares in the company closed five cents lower last night at €7.15.
