Gresham Hotel Group said last year was the "most difficult in living memory" with the effects of both foot-and-mouth disease and the fall-out from September 11th hitting business.
The Irish hotel group is the subject of takeover speculation involving Israeli group Red Sea Hotels.
Results for the year to end-January showed the group slipped into a loss of €4.8 million at the pre-tax level from a €9.33 million profit in the previous year.
At the operating level excluding exceptionals, profits were trimmed to €7.7 million from €13.5 million on turnover which was held steady at €55 million.
The group said it expects trading conditions to remain challenging throughout the year although it says there are emerging signs from the domestic leisure and corporate markets, which if they continue, will benefit the group, particularly in the second half.
Gresham is paying an increased final dividend of €0.032 per share, up 7 per cent on the previous year.
AFP