Shelbourne Hotel firm's losses fall 98%
PRETAX LOSSES at the company that manages the five-star Shelbourne hotel in Dublin last year narrowed by 98 per cent to €104,282.
In accounts just filed with the Companies Office, Torriam Hotel Operating Company said turnover at the hotel increased marginally from €9.3 million to €9.4 million in 2011. The €104,282 pretax loss compares with a loss of €7.6 million in 2010.
The 2010 figure was distorted by €7.5 million in costs incurred by Torriam associated with a legal case taken by the hotel’s owner, Shelbourne Hotel Holdings Ltd (SHHL).
The case concerned Torriam’s fulfilment of obligations arising out of the parties’ 20-year management agreement for the operation of the Shelbourne.
The most recent accounts state that an arbitration tribunal on November 10th, 2010, dismissed SHHL’s claim to be entitled to terminate the agreement and the €7.5 million costs comprised of the awards to the Shelbourne and Torriam’s legal, professional fees and arbitration costs.
A subsidiary of hotel giant Marriott International, Torriam’s revenues are made up of management fees and payroll services. The firm recorded an operating profit of €86,514 last year following an operating loss of €7.7 million in 2010.
However, net interest payments totalling €190,796 pushed the firm into the red. The firm’s cost of sales last year increased from €9.2 million to €9.3 million.