Regency suffers financial losses since shootings - court

The Regency Hotel, where David Byrne was killed in February, has been suffering heavy financial losses since the shooting, the High Court has heard.

James McGettigan, director of Regan Development Ltd which trades as the Regency Hotel Group, said in a sworn statement that the hotel had suffered immense reputational damage and loss of business in the weeks which followed the shooting, in which two people were also wounded.

He said the viability of the trade and the livelihoods of staff had been undermined since the attack, when a group of at least four armed men had entered the premises as a boxing weigh-in was taking place.

Micheal P O’Higgins SC, counsel for Regan Development Ltd, said the hotel had been closed off as a crime scene for several days after the shooting. There had been extensive media coverage of the incident, and afterwards many booked events were cancelled.

The family-run hotel, off Swords Road, Drumcondra is seeking indemnity from its insurer Aviva, but Mr Justice Robert Haughton said yesterday that the matter was not urgent and put the application back to the new law term in April.

Judge Haughton was told the incident was covered under the insurance policy, and the claim procedure had been followed.

The court heard the insurance contract provided the hotel coverage in respect of losses arising from the diminution of income and increased costs which had been triggered by events including murders on premises.

Counsel said the loss had been estimated at €217,196 but despite repeated requests his client had received no confirmation from Aviva Insurance that they had any intention to indemnify the hotel.

Insurance

Mr O’Higgins said the business had suffered immense reputation damage and was in a precarious state, [and was] back in recessionary conditions.

Mr McGettigan said the gravity of the financial situation had increased and he was anxious to seek a commitment from Aviva Insurance that they will indemnify the hotel.

He claims that the hotel’s difficulties are not insurmountable but are critical and demand the urgent attention of its insurer.

Judge Haughton heard the three-star hotel, which caters to businesses and tourists, had suffered loss of business on rugby and GAA weekends and St Patrick’s Day.

The hotel, which also provided temporary social and emergency housing through arrangements with Dublin local authorities, had turned over €7.3 million last year.