The five-star Park Hotel in Kenmare operated by brothers Francis and John Brennan recorded an 89 per cent increase in pretax profit last year to €331,315, while revenue rose by 6 per cent to a record €4.4 million, latest accounts show.
The Brennans have established themselves as television celebrities from hosting the long-running RTÉ programme At Your Service, which they have decided will not return for a 12th series.
“We had a good run of it and it was time to say leave it at that after the 11th series,” John Brennan said. Asked might it return in the future, Mr Brennan stated: “Never say never. We needed a break.”
The Park’s income from rooms last year increased from €2.4 million to €2.59 million, while €1.15 million was generated from food, €417,084 from beverages, and just under €225,000 from its spa.
The hotel company Beechside Ltd recorded an operating profit of €601,356, with interest costs of €270,041.
Mr Brennan, who is managing director and co-owner of the business, said last year's revenue figure was a "record" for the hotel. He attributed this to several factors, including the number of flights coming into Ireland from the United States and the benefits of the Wild Atlantic Way.
However, he said 2019 has been “a tough, tough year” for the Park due a softening in the overseas and domestic markets for visitors, and “the massive impact from the 50 per cent increase in VAT”, which he described as a “fundamental mistake by Government”.
Revenue this year is down about 10 per cent, he added.
Mr Brennan said the hotel’s US customers account for about 30 per cent of revenue, with profitability from them far in excess of that percentage.
He said the biggest threat to tourism is people’s approach to long-haul travel and the impact that will have on hotels based in rural areas.
The average room rate at the Park is €450 to €550 per night at high season. Mr Brennan said: “There is great value to be had at the moment in the five-star market.”
He said Francis Brennan’s growing media profile “has been extremely beneficial for the hotel and you can see that when visitors are having their photo taken in front of the hotel”.
