The owner of FBD Hotels & Resorts plans to invest €7.5 million to grow and develop its business in Ireland and Spain next year. This compares with €2 million last year.
The hotel group said it also expects to post earnings before interest, tax, depreciation and amortisation (Ebitda) of €9 million for this year, up from €5.9 million in 2014.
It is targeting combined operating profits of €50 million over the next five years. This would represent a substantial step up on its recent performance given that the company recorded an operating profit of €4.8 million last year and €3 million in 2013.
Detailed plans for the investment are to be announced in the coming months.
Investment group Farmers Business Developments plc now wholly owns the hotel company having acquired the 50 per cent holding of its former join venture partner, listed insurer FBD, for €48.5 million in October. The company owns and manages three hotels in Ireland – the Castleknock Hotel and Country Club in Dublin, and Faithlegg House Hotel and the Tower Hotel in Waterford – and two resorts in southern Spain, La Cala and Sunset Beach Club. It employs more than 700 staff.
Growth strategy
Hotel group’s chief executive
David Kelly
said the increased investment signals a new chapter in its history. “We have an ambitious five-year growth strategy and are already seeing significant growth in Ebitda this year,” he said.
“We are seeing positive momentum building in the Spanish hotel and residential property sectors . . . revenue is up on 2014 across our portfolio. Our development plan, including a significant capital investment, means our business is in a strong position to compete and grow.”
Latest accounts for FBD Property and Leisure Ltd, which owns the hotel group, show that it made an after-tax profit of €1.6 million last year on turnover of €53.1 million.
