THE PARENT of the company that owns the Shelbourne Hotel has written off the value of an investment in the business as the directors believe it is worthless.

Kantaka Enterprises, the vehicle used by developers Bernard McNamara, John Sweeney, David Courtney and Bernard Doyle to buy the hotel on Dublin’s Stephen’s Green, recently published accounts showing the company had an €832,000 deficit at the end of 2008.

The accounts show that Kantaka wrote the value of an €821,000 investment in its subsidiary Shelbourne Hotel Holdings to nil.

The notes state that the directors decided to write off the value of the entire investment because of the uncertainty in the hospitality and property markets.