Hodson Bay Group revenues down ‘60 per cent plus’ due to Covid-19

The Hodson Bay Hotel group sustained a hit of more than 60 per cent on revenues due to the pandemic in the past year.

That is according to managing director Padraig Sugrue, who was commenting on new accounts for the group which show that before the pandemic pretax profits increased by 51 per cent to €3.1 million in the 12 months to the end of February 2020.

Revenues at the O'Sullivan family-controlled Shermond Holdings Ltd rose marginally to €31.99 million.

The Shermond accounts cover the performance of the group's 4-star Hodson Bay hotel outside Athlone, the 4-star Sheraton hotel in Athlone town centre, and the 4-star Galway Bay hotel.

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In January last year the group fully opened its €50 million 234-bedroom Hyatt Centric hotel in the Coombe near St Patrick’s Cathedral in Dublin, its first in the capital. Separate accounts for the Hyatt hotel have yet to be filed.

Mr Sugrue said that the Hyatt “was showing very strong levels of business before we had to close in March 2020” due to the first lockdown.

“The timing didn’t work last year, but we still have great confidence that when the business returns that we have a really strong product there.”

Mr Sugrue said the group continued to receive strong support from its lenders. “When the financial institutions see you managing the business in a prudent and efficient manner, they have been very supportive.”

The focus for 2020 “had been on preventing any cash burn or incurring operating losses, and that was achieved for the past year”.

Mr Sugrue said the group has managed to retain 200 jobs, and that the Government subsidy scheme has been key.

Upgrade works

The Hyatt and Sheraton remain open to provide accommodation to essential workers, while the Hodson Bay is currently closed for upgrade works.

Mr Sugrue said he hoped “for a recovery as we head into the summer months”.

“Safety is a priority, and we hope that by the latter part of 2021 as we head into 2022 that we don’t have to take a step backwards.”

At the end of February last accumulated profits at Shermond Holdings totalled €19 million. The group’s cash funds increased from €2 million to €4 million.

The profit took account of non-cash depreciation costs of €1.33 million. The amount owed to credit institutions reduced from €31.7 million to €30 million.

Staff costs totalled €13 million.