Hotel group turns in ‘extraordinary performance’ despite €220,000 loss

THE managing director of Griffin Group Hotels Liam Griffin said yesterday that the group last year turned in an “extraordinary performance” in spite of recording a €220,000 cash loss.

Wexford’s former All-Ireland winning hurling manager was commenting on results for the Griffin Group of hotels last year, which show revenues at the group decreased by 21% from €21m to €16.4m.

The group operates the award winning Monart Destination Spa, Hotel Kilkenny and Ferrycarraig Hotel in Co Wexford and the figures show that the group’s pre-tax losses increased fourfold to €1.4 million to the end of December.

However, Mr Griffin pointed out yesterday that this figure included a depreciation cost of €1.18m. The cash loss last year of €220,000 also included bank loan repayments totalling €522,756.

Mr Griffin said that the group’s performance was in line with expectations given the current financial difficulties facing the hotel and leisure industry. “It was one hell of a difficult year and all of the stakeholders in our group: management, staff and suppliers did a fantastic job and all made sacrifices.

He said: “I am now working harder, faster and stronger, working seven days a week to help keep the show on the road.”

The group employed 333 at the end of last year — a drop of 60 on 2008 and Mr Griffin confirmed that staff have taken wage reductions of between 7.5% to 10%, with management taking comparable cuts.

The figures show that the group’s staff costs last year declined by 16% or €1.4m from €8.8m to €7.4m.

Mr Griffin said: “Some staff have also been put on a three-day week. It causes hardship for them and I feel very unhappy about it.”

Mr Griffin later added: “The challenges we face, in sporting parlance is that every morning we get up for work, it is like being 15 points down and playing into the wind, but I have to pay tribute to the tremendous loyalty our customers have shown us. Without them, we wouldn’t be here.”

However, Mr Griffin said that the Government has done nothing to address the over-supply of hotels it created in the market.

Mr Griffin said: “It is the elephant in the room.”

The Griffin Group last year paid €10,000 per week in local authority rates or €520,000 for the year. “These are draconian rates and are not doable. The group and its employees have taken a lot of hits. We are treading water. I don’t see that on the State side.”