Leonardo Hotels, previously known as Jury’s Inn, saw a remarkable surge in revenue last year, with figures more than doubling to €48.32m. As the tourism industry recovered from Covid, the Irish operation, Fattal Leonardo Operation (Ireland) Ltd, recorded pre-tax profits of €4.18 million.
The surge in revenue was due to a 128% increase from €20.29 million to €48.32 million. The profits also take into account a non-cash write off of €8.49 million, as the business changed its brand from Jury’s Inn to Leonardo in the UK in 2022.
The directors deemed it appropriate to write off the brand intangible as all franchise fee income generated by the company ceased upon the UK hotels’ rebrand. However, the firm’s franchise fee income in 2022 was €7.6 million, a 50% rise on franchise income from 2021.
The Fattal Hotel group, owned by Israeli billionaire David Fattal, acquired the entire Jurys Inn portfolio in 2017. The company operates five Leonardo hotels in prime city locations in the Republic and Northern Ireland, including hotels in Dublin, Cork, and Galway.
The directors largely attribute last year’s impressive results to the recovery from Covid and the lifting of health and travel restrictions. This resulted in strong domestic demand and occupancy, with market activities returning to pre-pandemic levels.
The firm operates on a low-cost business model, charging its customers rates that vary depending on levels of demand. While this reduces the financial impact arising from adverse economic conditions, it does not eliminate it entirely.
The company’s operating profits increased almost eight-fold from €660,000 to €5.17 million. The franchise income of €7.6 million offset by finance expenses of €8.59 million resulted in a pre-tax profit of €4.18 million.
Numbers employed increased from 347 to 405 during the year, and staff costs more than doubled from €4.67 million to €11.37 million. Pay to directors, including pension payments, also increased from €288,000 to €302,000.
Despite the impressive results, the profit also takes account of combined non-cash depreciation costs of €8m. At the end of December, the firm had accumulated profits of €19.58m while its cash funds decreased from €1.05m to €790,000.
