‘Staycationers’ contributed to a former Sean Quinn hotel, the Slieve Russell in Co Cavan, recording pretax profits of €2.4 million last year.
Directors for Slieve Russell Hotel Property Ltd noted in new accounts that the hotel “traded very well” from July to September 2020, attracting many Irish guests who enjoyed ‘staycations’.
However, across the 12 months to the end of June 2021, revenues were down sharply at the hotel company due to Covid-19 enforced shutdowns.
The new accounts show that the firm recorded revenues of €6 million for the year compared to €17.28 million for the previous 18 months.
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On a pro-rata 12 month basis, revenues were down 48 per cent, with directors pointing out that from October 2020 to June 2021, the hotel was only open for essential services with the exception of a few weeks in December 2020.
The hotel firm recorded an operating profit of €2.96 million, chiefly due to a nn-cash reversal of a prior year impairment of €2.13 million and other operating income of €2.45 million.
The ‘other operating income’ consisted of Government Covid-19 wage subsidy scheme payments and the Covid Restrictions Support Scheme (CRSS).
Numbers employed by the firm last year declined from 217 and 208 as staff costs fell from €8 million to €3.75 million. Pay to key management personnel amounted to €566,000.
The hotel company recorded a pretax profit of €2.4 million after incurring interest charges of €542,000. The pretax profit of €2.4 million followed a pretax loss of €843,000 in the prior period.
The directors said the firm’s operational budget for the current year to the end of June 2022 indicates positive earnings before interest tax depreciation and amortisation, a heading often seen as a measure of cashflow.
At the end of June 2021, the amount owed by the hotel firm to credit institutions had reduced from €71.34 million to €68 million, with directors noting that they acknowledge that the liabilities owed to Irish Bank Resolution Corporation (in special liquidation) are significant and they are in ongoing dialogue with the bank in connection with the facilities.
With the collapse of the Quinn empire, IBRC, formerly Anglo Irish Bank, assumed control of the Slieve Russell hotel when a share receiver was appointed to the hotel firm in April 2011.
