Hotelier John Brennan is "more nervous" now about the prospects for the five-star Park Hotel in Kenmare than any time over the past two years.
“We had a bumper year last year but 2022 won’t be as good, said Mr Brennan, who runs the business with his brother Francis. “Last year was an unbelievable year for the business but there is a softening in the market today on all fronts.”
Mr Brennan put this down to the economic climate, increasing staff and other costs, rising inflation along with the uncertainty created by the war in Ukraine for the hospitality business.
He was commenting as accounts for Beechside Ltd, the corporate entity running the hotel were recently filed. They cover the pandemic-hit year 2020.
Tullamore Dew invites visitors to ‘dip the dog’ as new distillery tours begin
Irish eyes will not be smiling if war in Europe stops US tourists from travelling
War in Europe may stunt the recovery in US visitor numbers to Ireland
Ryanair bid to force price comparison site to hand over customer details fails
Mr Brennan said that the business was hit by a “tsunami” in 2020 and the accounts show a pretax loss of €379,358 as revenue slumped 59 per cent to €2.02 million.
Numbers employed fell to 38 from 61. The business availed of Covid-19 wage supports and received €277,900 in Government support.
On an ebitda basis – earnings before interest, tax, depreciation and amortisation – he said the business broke even “which wasn’t bad for the year that was in it. We were only open for four months.”
Uncertain outlook
Looking ahead to this summer, he said Irish bookings had stalled “while international travel hasn’t kicked in to the way one would have needed it to happen so far and that was always going to be slower coming back”.
He said: “Every time we opened our front doors over the past two years, we were bombarded. Now it is a little softer and we are thinking ‘it is not busy’. But it is busy and we are busier than 2019, which is the last fair comparison.”
Mr Brennan said the business last year benefited from no outward international travel and pent-up domestic demand. A €2 million refurbishment of the ground floor led by designer Bryan O’Sullivan also paid off.
The Park was open for only five months in 2021 but revenue was only a little behind a very strong 2019.
Mr Brennan said business “is currently under savage pressure from a costs point of view”.
“I would be concerned that costs in the current environment will run to such a level that will put enormous pressure on a sustainable business.”
He also hit out at the cost of the additional once-off public holiday this year.
“The bank holiday is only a cost to business and not a cost to anyone else. We are fine. We are in good shape but a lot of struggling businesses are faced with another day’s pay.”
