THE Royal Dublin Society (RDS) is at an advanced stage in negotiations for the development of a £50 million hotel on its Ballsbridge grounds, according to chief executive Mr Shane Cleary.
Announcing a 20 per cent rise in operating profits to £582,000 for 1996, Mr Cleary said that if the proposed hotel goes ahead it would be "the biggest thing we're planning this year".
It would be located at the Merrion Road Simmonscourt end of the Ballsbridge property.
As ground landlord of the hotel, which would be developed and run by a major international hotel operator, the RDS would get "significant" annual income from the development, Mr Cleary said. A final decision by the society will be made soon while development will then be subject to planning permission.
Operating profits in 1996 were boosted by a good increase in income and cost control.
Operating income rose by 11 per cent to £4.6 million. RDS generates income mainly from commercial activities - exhibitions, indoor and outdoor concerts and room lettings - as well as income from members.
Income from commercial activities was up to £4.05 million, helped by the completion of phase one of the development plan - the main hall and the concert hall. Income from members was 22 per cent higher at £385,000, despite an eight per cent fall in total membership to 5,000.
The high average age of members meant that overall numbers fell, despite taking in 300 new members in 1996. Income from new members, who pay annually, more than offset the fall in income from lost life members who made a once off payment for membership. Other income rose to £176,000.
Operating costs rose by 9.4 per cent to £4 million with an 8.2 per cent rise in payroll costs to £1.6 million while operating expenses were 10 per cent ahead at £1.7 million.
When a drop in investment income, from £273,000 to £197,900, is taken into account the society recorded a 3 per cent rise in its surplus for the year to £797,000. Investment income was down, due to spending on development.
With phase one now completed, the RDS is awaiting the Government and European Union decision on the location of the National Conference Centre before it proceeds with phase two.
A decision in favour of its Ballsbridge site would mean the replacement of buildings between the main hall and Anglesea Road to create a 2,000 seater auditorium.
If the National Centre is sited elsewhere, the RDS will build "a more modest conference centre" at a cost of £3 million to £5 million, Mr Cleary said. With £2.7 million in the bank at the end of 1996, the RDS is well placed to fund further development.
