AFTER THE BOOM:WHEN THE Quality Resort Killarney went into liquidation in January two employees decided to take over the business themselves.

Patrick Dillon and Paul O’Shea were the family-orientated hotel’s former general manager and financial controller respectively.

The new owners, who retained the company name and reopened the hotel with 275 rooms, apartments and holiday homes in April, say they saw an opportunity when the business initially closed its doors.

“We were out of work at the time and there was an opportunity here. I suppose the first thing was that we were unemployed, but we could both see the long-term potential in the place,” says Mr Dillon.

“We knew why the hotel was not successful. There were big drains on the property and we knew if we could get those things changed, then it would be a good opportunity for us.”

The pair immediately cut costs by shaving 100 rooms off the lease, which were set aside for a retail and office space development by the landlord and were not being used. They also made substantial savings by negotiating better rental rates for the overall resort. “We are now a tighter, more efficient unit than we were previously,” says Mr Dillon.

Although sales are down by up to 30 per cent this year, food and drink sales are in line with last year.

The duo have also reduced room rates by 10 per cent, re-negotiated terms with all suppliers and cut payroll costs by 5 per cent.

The hotel now employs 140 people for the busy summer season compared to 200 at the same time in 2008.

Mr O’Shea says customers are now given a €95 voucher at check-in to spend at the hotel’s restaurants, bars and other facilities.

“We have looked at our guests’ expectations. We removed what they did not value, and invested this in what they do value, leading to a greater customer experience at a more efficient cost,” Mr O’Shea says.

“This year it is not about making a profit or even next year, it is about paying bills and just getting through.”

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