The owners of Belfast’s Merchant Hotel have reported a £1m drop in profits due to unpredictable trading conditions in the hospitality sector.
Despite challenges, the iconic venue continues to attract visitors, with efforts underway to stabilise operations in a volatile market.
Beannchor Group, the parent company that operates the five-star Merchant Hotel along with other venues in the city such as the Cloth Ear, National, Dirty Onion, and Bullitt Hotel, saw its turnover increase by seven per cent to £37.5m in the year to June 2025. Despite this growth in sales, retained profit fell from £5m to £3.9m, representing a reduction of more than €1.2m when converted at current exchange rates, driven by rising operational costs, labour pressures, and a €610,000 loss from the revaluation of an investment property.
Accounts filed at Companies House reveal that pre-tax profits for the wider Beannchor Group declined by 22pc from £7.4m to £5.8m over the same period. The Merchant Hotel itself performed more strongly on an individual basis, with pre-tax profits rising by around 60pc to nearly £989,000. Group representatives described the overall results as a solid performance given the ongoing difficulties faced by hospitality businesses, including spiralling expenses that have squeezed margins across the industry.
Beannchor Group has maintained that revenues and profitability remain strong despite the pressures. A written statement shared “The financial year reflects a solid performance by the group in what remains an unpredictable environment for the hospitality sector.”
