The company that operates the Shelbourne Hotel in Dublin reported a widening of losses after tax last year as Covid-related Government supports dried up and interest payments on loans from its parent company increased.
By the end of 2023 accumulated losses of almost €12.8 million had built up at Torriam Hotel Operating Company, which is owned by US hospitality giant Marriott International.
Torriam, which manages the five-star property on St Stephen’s Green on a contract basis with its previous owners Kennedy Wilson, filed accounts in Dublin this week. They reveal an overall shareholder deficit in excess of €10.3 million at the Irish-registered entity at the end of last year.
Marriott, which has been approached for comment, has continued to manage the Shelbourne on behalf of its new owners, Archer Capital, since its acquisition earlier this year for a reported €260 million.
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Turnover at the five-star hotel increased by more than 14 per cent to almost €18.3 million last year. This was due to an 8.5 percentage point increase in occupancy rates to 81 per cent, the directors of the company said in a report attached to the accounts.
Operating profits rose from €71,380 in 2022 to €89,530 last year despite the absence of Covid-related wage supports. Torriam received grants totalling more than €1.8 million in 2022, equivalent to roughly 14 per cent of its total wage bill for that year.
The Shelbourne operator also received more than €5.9 million from the State in 2021 and €4.36 million in 2020 when the hotel was forced to close for periods due to Covid-related restrictions.
After-tax, however, the company sank to a €294,362 loss last year – up from just over €42,000 in 2022 – on the back of interest payments on a €9 million loan from its ultimate parent, Marriott International, which nearly quadrupled in the year to more than €415,300.
The loan is due for repayment in January 2025, while a separate €2.5 million debt to its parent company is due to be repaid in the next year, according to the filings.
In a note the directors of Torriam said they “have a reasonable expectation” that the company has enough resources to continue operating. “The directors have received confirmation that Marriott International Inc will support the company as necessary and the directors are satisfied it has the ability to do so,” they said.
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