Losses continue to mount for CG Hotel Group

The economic backdrop creates considerable uncertainty over the ability of the CG Hotel Group to achieve profitability in the foreseeable future, according to accounts just published by the company. The accounts show that losses continued to mount at CG Hotel Group in 2010, rising to €2.8 million.

In 2006, the group purchased the Great Southern hotels at Dublin, Cork and Shannon airports and the two Dublin and Cork hotels were subsequently rebranded Radisson Blu while the Shannon hotel became a Park Inn. The group, including Mayo businessman Ben Walsh, purchased the three airport hotels from the Dublin Airport Authority for about €75 million.

The group recorded an operating profit of €260,000 in 2010, but interest payments of €3.1 million on bank debt pushed this into a €2.8 million loss.

The accounts – signed off on October 11th this year – show that revenues at the group decreased marginally from €11.82 million to €11.38 million in the 12 months to the end of December 2010.

The group has bank loans totalling €63 million.