LOSSES AT the three luxury hotels in London controlled by Derek Quinlan and Paddy McKillen narrowed last year to £3.2 million.
This compares with a loss of £9.3 million in the previous 12 months by the five-star Connaught, Claridge’s and Berkeley hotels, which could end up with the National Asset Management Agency (Nama).
Accounts for Coroin Ltd, just filed with the Companies Office in the UK, indicate that the turnaround was due to an exceptional gain of £4.5 million on the sale of intellectual property rights to a related company and a tax credit of £1.2 million.
Turnover rose by 10 per cent to £104 million, but its room occupancy fell by six percentage points during the year to 78 per cent.
The accounts said the variance in occupancy was due to an “increase in inventory” from the reopening of the Connaught during the 12 months to the end of June 2009.
“Additional uplift in revenues is expected in the coming year with the opening of the new wing, ballroom, private dining and spa,” the directors’ report states.
The average room rate rose marginally to £433 a night. However its revenue-per-available-room, a key metric in the hotel trade, fell by 3 per cent to £384. The company said this “outperformed the wider luxury hotel sector”.
The report says the hotels’ performance “further evidences the resilience of demand for the prime London hotels during a period of severe recession”.
No dividend was paid last year.
Coroin made interest payments of £39.1 million in the period compared with £38.7 million in the previous year. Net debt rose to £601.9 million from £572.3 million.
