Gresham Hotel turnover up as losses narrow at Killarney group
Accounts indicate accumulated losses on the increase at Inchydoney Island and Lodge Spa
Turnover at the Gresham, which has 323 rooms and 10 suites, rose to €16.1m last year from €14m in 2014. Photograph: Nick Bradshaw
Dublin’s landmark Gresham Hotel, which was recently acquired by Spain’s Riu Hotels and Resorts for in excess of €90 million, saw revenues rise sharply last year.
Turnover at the hotel, which was built in 1817 and has 323 rooms and 10 suites, rose to €16.1 million last year from €14 million in 2014 due to increased bookings from attendees coming to Dublin for events and conferences.
Newly filed accounts for Gresham Hotel Company Limited show it recorded a €40.1 million profit last year, up from just €2.86 million in 2014 due, to a €30 million writeback on impairment provisions.
“The group has continued to experience an improvement in its trading, with sales increasing by 15 per cent in 2015 and earnings before interest, depreciation (ebit) and the impact of intercompany write downs increasing to €5.1 million from €3.5 million in 2014,” company directors said.
“Cash flow from operations was positive in the last four years and is expected to remain positive in 2016. Trading to date in 2016 has been very strong and is outperforming both budget and prior year.”
The National Asset Management Agency (Nama) put the well-known property on the market earlier this year. It acquired the hotel after it took over loans from Precinct Investments, which bought the Dublin property in 2004 as part of its €117 million buyout of the Gresham group. The group previously also owned the Park Inn Hyde Park and the Metropole in Cork, which it sold last year for more than €5 million.
According to the latest accounts, shareholder’s loans of €26.9 million were subordinated to the debt owed by Gresham Hotel Company Limited to Nama.
Staff costs rose to €5.1 million in 2015 from €4.9 million a year earlier as employee numbers increased from 135to 139. Directors’ emoluments totalled €331,942, up from €310,000 in 2014.
Separately, Killarney Hotels Limited, which operates two well known five-star and one four-star hotel in Co Kerry, saw losses narrow last year as it warned of the need to evolve in order to compete in an online world.
New accounts show the company, which is dependent on the support of its Swiss parent, Liebherr Hotels, recorded a €4.9 million pre-tax loss in 2015, versus a €5 million loss a year earlier. Revenues rose 26 per cent, from €13.4 million to €17 million.
The accounts show the company owed €44 million to Liebherr at the end of last year. Killarney Hotels Limited he wrote down its property by €28 million in 2012.
“The industry is going through a period of change. It is more and more consumer-led and digital technologies are shifting the balance towards the consumer. Killarney Hotels have to continue to evolve in order to compete in a digital world of increasingly demanding international guests,” company directors said.
Elsewhere, abridged accounts recently lodged for Inchydoney Island and Lodge Spa Limited, show losses continued to rise at the luxury Co Cork-based resort last year.
The accounts show accumulated losses rose to €1.15 million in 2015, compared to €1.01 million a year earlier. Employee numbers at the resort increased to 150 from 132 with related costs jumping from €2.3 million to €2.5 million.