The Armagh City Hotel has reported a loss in its first full year of trading since the end of all Covid-19 restrictions.
The company reported a 6% (£300,000) uplift in revenue to £5.93 million for the year ending July 31 2023.
But the directors of Armagh City Hotel Limited blamed rising costs and the “continued contraction of margins on food and beverage sales” for the company swinging from a profit in 2022 to a pre-tax loss of £185,000 last year.
New accounts published on Companies House show the hotel firm’s cost of sales rose by 7.7% to £3.925m in the 2022/23 year, while administrative expenses increased by 23% to £2.2m.
The trading period saw the hotel complete a significant programme of investment in bedroom upgrades.
“Significant repairs were carried out in other areas of the hotel, creating a more luxurious space for our guests to relax and unwind,” said the directors.
“These investments will drive in the future and the hotel will continue to maintain our guest spaces to a high standard.”
Staff numbers increased to 175 in 2023, up from 169, taking annual staff costs to £2.5m.
The company said it had also invested in new solar panels on its roof, which is expected to cut its electricity costs in future.
The biggest shareholder in the Armagh City Hotel Ltd is the Mooney family, which also owns Belfast’s Wellington Park Hotel and The Botanic Inn.
The trading companies behind both hospitality properties last year exited a company voluntary arrangement originally launched in late 2020 on the back of financial pressure on both businesses.
The Wellington Park Hotel remains closed to the public.
It’s understood the hotel is subject to a long-term UK government contract to provide accommodation for asylum seekers.
