McKeever Hotels boosted by rise in turnover

McKeever Hotels boosted by rise in turnover

McKeever Hotels  has seen a £1.6m hump in turnover to £15.2m as the group prepares to take over its latest acquisition.

While turnover for the year to September 2023 rose, pre-tax profits declined from £1.9m to £1.4m.

The results were published as McKeever Hotels prepares to take over the running of the Lodge Hotel in Coleraine  – its fifth hotel in Northern Ireland.

A deal to acquire the hotel was finalised at the start of this month after three decades in which it had been run by Norma Wilkinson.

In a strategic report filed with the accounts, the company’s directors – all members of the McKeever family – said the results for the year had been satisfactory but added that they had been achieved “at a challenging time for the industry with rising costs”.

Risks and uncertainties facing the business arose from competition within the market, availability of labour supply and employee retention, and general market conditions.

But they added: “Due to the company’s reputation and standing in the marketplace, and effective management strategies, the directors believe that the risks and uncertainties facing the company can be adequately managed.”

Over the year, the cost of sales rose from £3.1m to £3.7m, while administrative expenses grew from £8.8m to £9.9m.

Of its £13.6m turnover, £12.7m came from its operations in the UK, with £2.5m from ‘overseas’. Both markets had increased their turnover, with UK turnover up £1.1m and overseas turnover up by nearly £500,000.

Employee numbers had dropped from 314 to 298, although its total pay bill was up from £5.2m to £5.7m. Total directors’ remuneration came to almost £128,500.

The 56-bedroom Lodge Hotel is McKeever Hotel Group’s sixth venue, joining Co Antrim hotels the Adair Arms, Dunsilly, Corrs Corner and the Dunadry, as well as Dillons Hotel in Letterkenny.

Coleraine will benefit from rising demand for accommodation when golf tournament The Open returns to Royal Portrush next year.

The Lodge Hotel’s website makes a selling point of its proximity to the “golfer’s paradise” of the north coast, with Royal Portrush “a mere 10 minutes drive away from the hotel”.