Temple Bar Hotel sold to Boston-based group for undisclosed fee

The Temple Bar Hotel in Dublin, which is part of FBD Hotels and Resorts, has been sold to the Boston-based Pyramid Hotel Group for an undisclosed fee.

The three-star hotel was put up for sale last August, with estate agent CBRE guiding between €27 million and €30 million for the hotel.

It was described as a “highly profitable” city centre hotel, with 132 en suite bedrooms and a “vibrant and comprehensive food and beverage operation”.

The hotel has a nightclub called Alchemy that can cater for 1,010 patrons. There is also the potential to add 27 bedrooms to the property subject to planning permission.

In its full-year results, FBD said the proceeds from the sale would be used to pay down the debt of the joint venture that owned the property.

Pyramid Hotel Group was set up in 1999 and describes itself as a privately-owned, full-service hotel and resort company. It currently manages and provides services to 57 properties in total, 42 hotels and 15 resorts. These properties have 20,800 rooms between them.

Pre-tax loss

FBD reported a pre-tax loss of €4.5 million for 2014, down from a profit of €51.5m in 2013.

A severe deterioration in the market claims environment and the “worst weather experience” in the group’s history are said to have adversely impacted the insurer. An increase in insurance rates during the year was not enough to match the sharp increase in claims.

FBD’s loss ratio increased from 67.9 per cent to 86.0 per cent in the same period.

While the group has taken action to return to profitability, such as increasing rates in 2014, FBD said that it will be “some time before the full benefits of the actions taken are reflected in profitability”.

Andrew Langford, the group chief executive, said that 2014 was a "very difficult year" for FBD and the Irish insurance industry.

“The claims environment has deteriorated significantly and at a speed which exceeded expectations. Our focus for 2015 is on ensuring that we continue to support our customers when they need us, while ensuring that our business model remains robust and delivers a return for shareholders.

“FBD has taken significant, targeted actions to return to profitability,” Mr Langford said, and that as a result, “FBD is better positioned to manage the immediate challenges within the industry”.

Looking to 2015, FBD said it is guiding 2015 operating earnings per share of between 20 cent and 40 cent, “subject to no exceptional claims events arising”.

FBD said it would increase its final dividend up by 2.3 per cent to 34 cent per share, bringing full-year dividend growth up to 4.1 per cent.