Five-star hotel had ‘excellent’ 2010

ONE of Cork city’s best known hotels, the five-star Hayfield Manor hotel, had “an excellent 2010” exceeding the hotel’s performance in 2009 and 2008.

Financial controller of Hayfield Manor Hotel, Mark Scally, said that the hotel “went from strength to strength in 2010”.

Mr Scally was commenting on accounts filed by Hayfield Leisure Ltd to the Companies Office that show that pre-tax profits at the company dropped by 91% from €526,788 to €45,836 in the year to the end of December 2009.

Mr Scally said: “I don’t believe that the hotel sector is as bad as the media is making it out to be.”

The filings show that the chief factor behind the sharp decrease in profits was a €272,556 “loss on disposal of investments”.

The figures show that the company’s operating profits dropped by 33% from €557,564 to €368,824.

The abridged accounts do not provide a turnover figure and they show that the company’s gross profit dropped by 19% from €5.2m to €4.2m during the 12-month period.

The company had shareholder funds totalling €3.1m at the end of 2009. The company increased its cash from €509,894 to €898,810 during 2009.

Mr Scally said that the hotel has a good mix of corporate and leisure guests and is not totally reliant on either the domestic or foreign markets.

Mr Scally said that 2009 was a tough year, with the first six months being particularly hard. He added that the 87-room hotel employs 80 staff and there have been no wage cuts amongst the staff. He said: “We are pleased with that.”

The figures show that €700,000 was paid under the heading of ‘Management Contract’ in relation to the company’s two directors and Mark Scally’s parents, Joseph and Margaret Scally and the same amount was paid by the company in 2008.

The two also operate the Killarney Royal Hotel.

The directors’ report for Hayfield Leisure Ltd state that “the results of the business and the financial position were considered satisfactory and the directors expect continued growth for the foreseeable future”.

The directors did not recommend the payment of a dividend last year.

The figures show that employment costs in 2009 dropped from €2.4m to €2m.