A Kilkenny hotel owned by Kerry-based businessman Xavier McAuliffe expects to record a profit in the current year.

Last Friday, the Bank of Scotland took control of Mr McAuliffe’s exclusive 137-bedroom Lyrath Estate hotel in Kilkenny by appointing a receiver on foot of an estimated bank debt of €50 million.

However, the owner of the Spectra Group also owns the four-star Rivercourt Hotel in Kilkenny city, and filings by Gatehalf Ltd for the hotel show the hotel is projected to make a profit in the year to the end of June (2012).

This follows the hotel recording a loss in 2010 of €999,190 as a result of the hotel recording property write-downs of €1 million.

In contrast to the Lyrath Estate, the company that operates the Rivercourt Hotel has no bank borrowings. Instead, it has an inter-company loan from Mr McAuliffe’s Photographic Laboratories and €537,148 in rent owing to XRD Partnership, where Mr McAuliffe is a partner.

The hotel employs 81 people and the abridged accounts show the firm’s gross profit in 2010 declined by 10 per cent from €4 million to €3.6 million.