DEREK QUINLAN'S luxury hotels in London moved into the black last year, reporting an after-tax profit of just under £8 million in the 12 months to the end of June.
This compares with a £7.5 million loss recorded in 2006 by the five-star Connaught, Claridge's and Berkeley hotels.
Accounts for Coroin Ltd, filed recently with the companies office in the UK, indicate that the dramatic improvement was down to a £10 million increase in group turnover and a £5.2 million reduction in its interest bill for the year.
It was also boosted by a £7.1 million tax credit relating to losses in previous years.
The improved financial performance came in spite of the Connaught hotel closing on March 27th last year for a £70 million refurbishment. It reopened in December.
As a result of the temporary closure, Coroin took a £840,000 write-off relating to fixture and fittings.
"The group expects that the newly refurbished [Connaught] hotel will trade in the future at levels above that previously experienced," the accounts state.
The accounts show that room occupancy for the properties rose to 84.9 per cent from 82.5 per cent in 2006.
Revenue from each available room, meanwhile, increased by 16.8 per cent to £383.
"The group's focus in 2008 is on the continual enhancement of its property portfolio whilst building on the exceptional levels of service provided to its guests," the directors' report states.
The directors noted the increase of supply of luxury accommodation in London, but said the company was "well placed to manage such competition".
They said activity levels would be sustained for the foreseeable future in the absence of "unforeseen circumstances".
Coroin's directors include Mr Quinlan, Riverdance promoters Moya Doherty and John McColgan, Davy boss Kyran McLaughlin and Irish property developer Paddy McKillen.
Coroin's turnover rose by 21 per cent to £94.3 million in 2007, while its cost of sales were £29.9 million, up from £28.5 million.
Its operating profit increased by 8.5 per cent to £33.1 million. Accumulated profits were £19.7 million at the end of last June.
The accounts show that the group made a loss of almost £1.2 million on the sale of the Savoy Theatre in November 2005. The theatre was sold for £5.4 million net of expenses.
Coroin's interest bill during the year was £34.1 million, down from £39.4 million in 2006. No dividend was paid to investors.
Last November, Quinlan Private said it would spend £250 million extending and refurbishing Claridge's and the Berkeley. Work is to begin on both hotels in early 2009, and they will remain open during construction.
Quinlan bought the then Savoy Group for £750 million in May 2004. The deal included the up-market Savoy Hotel in London, the Savoy Theatre and Simpson's-in-the-Strand restaurant, all of which were sold on.
