It was one of the shortest hotel openings in the history of Dublin, but it may go down as one of the most lucrative. The capital's newest five-star hotel, the Westin on College Green, opened for three days last week before closing again until July.
The handful of mystery guests were unable to enjoy the luxury of the of the Vaults Bar, the Exchange Restaurant, the fitness centre or any of the other five-star facilities. Instead they made do with 20 bedrooms, a fire escape and a check-in desk.
Construction work on the unfinished hotel - which more closely resembles a building site than a five-star establishment - continued unabated around them.
Treasury Holdings, the property company behind the project remained tight-lipped yesterday about the reason for the low-key opening and the identity of the guests - understood to include Mr John Ronan, one of the principals behind Treasury Holdings.
The chief executive of Treasury, Mr Maurice Harte, said yesterday the project was making good progress and "there have been a number of dry runs".
Property sources familiar with the financing of hotel projects said yesterday the hotel would have had to be open for at least a few days in the 2000-01 tax year - which ended last Thursday - in order for investors to avail of lucrative tax breaks when settling their tax bills for last year.
The hotel was originally due to open in November 2000 and many individuals who invested in the £35 million project may have been counting on being able to claim tax relief in the 2000-01 tax year, he said. "They may have already made preliminary tax returns on the basis of being able to get the relief," he said.
Investors in hotel schemes are allowed write off their investment against tax over seven years at their top rate of tax. As the higher tax rate falls, the value of the relief also falls. The reduction of the top rate of tax from 44 per cent to 42 per cent as of last Thursday would have been an added incentive for Treasury and its investors to open the hotel in the 2000-01 tax year, he said.
The investors behind the hotel have leased it to the Starwood Hotel & Resorts - the owners of the Westin chain - for 25 years. The rent is reported to be about £1.5 million a year. The hotel is significantly behind schedule and is not expected to open until June. It occupies an island site bounded by College Street, Westmoreland Street and Fleet Street. The former College Street branch of AIB has been incorporated into the building and the former banking hall is to become a 200-seat banqueting hall.
The Pearl Insurance building on the corner of Westmoreland Street and Fleet Street will also form part of the new hotel.
Once it is fully open, rooms will start from £250 per night but the 1,500 sq ft presidential suite overlooking Trinity College will cost significantly more.
