Hotelier posts loss but believes banks will keep rolling up interest owed
Hotelier Jerry O’Reilly is confident that bankers to his five-star hotel, the Aghadoe Heights in Killarney, will continue to roll up bank interest loan payments on the business.
Accounts filed by Dalegrove Taverns Ltd, which operates the Co Kerry hotel, confirm that, since early 2009, the company’s bankers have rolled up the interest due on borrowings.
The figures show the firm recorded a pretax loss of €790,779 in 2011, following a pretax loss of €780,565 in 2010. The loss takes account of non-cash depreciation costs of €448,801. The company had bank loans and borrowings totalling €12.4 million at the end of December 2011.
According to the directors’ report, “the company has operated at an improved level of activity in 2011 due to increases in occupancy and room rates and the continued emphasis on cost reduction”.
The abridged accounts show the firm’s gross profit increased from €2.59 million to €2.9 million.
The directors state that the increase in turnover and prudent cost management resulted in an operating profit before depreciation of €89,775 in 2011.
Mr O’Reilly also operates hotels in Kilkenny and Limerick.
The Kerry native entered a number of ventures with developer Bernard McNamara. These included the redeveloped five-star Shelbourne Hotel in Dublin and the Radisson Blu in Galway.