Shelbourne firm posts €2.89m losses

THE COMPANY that operates the five-star Shelbourne hotel in Dublin last year recorded pretax losses of €2.89 million, new accounts show.

Documents just filed with the Companies Office by Torriam Hotel Operating Company Ltd (THOCL), a subsidiary of the Marriott Group, show the company’s revenues declined by 20 per cent from €17 million to €13.5 million in the year to the end of December last.

The hotel on Dublin’s St Stephen’s Green reopened in March 2007 after a period of refurbishment, which increased the number of rooms to 265.

The hotel is owned by developers Bernard McNamara, John Sweeney, David Courtney and Bernard Doyle through their vehicle, Kantaka Enterprises.

That company, which purchased the Shelbourne for €140 million in 2004, has written off the value of its investment in the business because its directors believe it is worthless.

Last year’s pretax loss follows the company recording a pretax profit of €343,604 in 2008.

THOCL is in legal dispute with the hotel’s owners, Shelbourne Hotel Holdings Ltd (SHHL), who are seeking to terminate the 20-year management deal with THOCL. THOCL denies any default justifying the termination of the agreement.

The accounts show the largest contributory factor to THOCL recording a loss last year was an 80 per cent increase in administrative costs, going from €3.5 million to €6.4 million.

The accounts show the hotel’s staff numbers last year fell by 130 from 616 to 486, with the aggregate payroll costs decreasing by 15 per cent from €14.9 million to €12.6 million, though the accounts indicate that staff salaries were paid by the hotel’s owners.

The losses recorded last year show the company’s accumulated losses increased to €3.7 million.