Turnover reached close to £50m in 2024 for Northern Ireland’s biggest hotel owner, reflecting a strong year for the hospitality sector here.
Pre-tax profits at Andras House dipped from £11.5m the previous financial year to £9.4m, however, as it continued to invest heavily in its portfolio of hotels.
The Belfast company operates seven hotels with a combined 1,303 guest rooms, and has released its accounts for the year ending April 30 2024.
New investments include a hotel in Portrush, which is due to launch in time for the return of the Open to the north coast, an event that will draw golf fans from around the world. The Marcus Hotel will be branded Tapestry Collection by Hilton
Artist’s impression of the new Marcus Hotel Tapestry Collection by Hilton in Portrush
Andras House was founded in 1981, and today runs hotels including with Hampton by Hilton in Belfast City Centre, Crowne Plaza Belfast and Ibis Belfast Queen’s Quarter.
Alongside the hotels, the group owns commercial property in Belfast, including “Grade A offices, restaurants, retail and health clubs”.
The hospitality sector had a strong year across 2024, with high room occupancy rates and growing revenues.
The results cover the period in which Andras House purchased the ETAP hotel on the Dublin Road in Belfast city centre for £7.35m.
Turnover at the company grew by 21.5% from the previous year, reaching almost £48m from £39m. Alongside revenue from the hotel and catering business, they also made £2.3m from property rental.
The cost of sales also grew last year, going up 21% to £21.6m from £17.8m the prior year.
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The main cost growth eating into profit margins at Andras last year was in administrative expenses. Regular admin costs went up 34% to £11m from £8m in 2023.
Andras also had a significant rise in exceptional expenses from just under £390,000, with the accounts noting that investment property devaluations cost the company £4.7m.
The company has seen a change in when the biggest chunk of its debts are due, with those due within one year down 32% to £14.6m, while longer term debts are up 53% to £32.9m.
Employee costs also rose by just under £2.5m to total over £12m last year. This 26% rise in costs occurred in a year when the average number of employees went up by 21 to 500.
Its healthy profit before tax of £9.4m for 2024’s accounts represents a 19% increase from the £11.5m it posted the previous year.
The company is headed by Rajesh Rana Picture: Colm O’Reilly
The company has invested heavily in recent years to grow and develop its hotels and other properties.
The directors’ report within the accounts describes the future projects by saying it has “several developments in the pipeline.”
“Planning permission has been secured for a mixed use development featuring an aparthotel with offices and cafes in Belfast as well as an aparthotel in another location.
“Andras House Limited has commenced the development of an 80-room hotel in Portrush, due to complete in early 2025.
“Timelines for development of these projects will be dictated by prevailing market conditions within the local hospitality and office market.
“The board are taking a prudent approach to future developments.”
Rajesh Rana, chief executive of Andras House, told the Belfast Telegraph last September that work on the Marcus hotel in Portrush was going “hammer and tongs” to meet the “hard deadline” to open in May 2025.