Hotel group’s losses rise to €1.56m

PRE-TAX losses at the hotel group led by hotelier Liam Griffin increased 11% last year to €1.56 million, figures show.

Accounts filed by Griffin Group Hotels with the Companies’ Office show group revenues fell 11% from €16.4m to €14.6m in the 12 months to the end of December.

The group’s hotels include Monart Destination Spa hotel, Hotel Kilkenny and Ferrycarraig Hotel.

The directors’ report said results and the group’s financial position “were in line with expectations” due to the industry’s difficulties.

However, they believe “the group is well placed to take advantage of an upturn in the tourist industry”.

The pre-tax loss of €1.5m sustained last year follows a pre-tax loss of €1.4m in 2009. However, a non-cash depreciation cost of €1m showed that the firm made a cash loss last year of €467,000 and that depreciation costs of €1.1m contributed to the 2009 pre-tax loss.

Operating losses increased 33% last year from €881,691 to €1.1m. The group’s pre-tax losses were recorded after bank interest payments of €389,632 were incurred.

The directors’ report states that the over-supply of 15,000 hotel bedrooms across Ireland has not been addressed, and that the over supply is multiplying the financial effects of slow domestic demand. However, it was off-setting decreasing consumer spending by controlling costs.

The numbers employed fell from 333 to 314, with staff costs declining 11% from €7.4m to €6.6m.

The loss last year reduced the group’s accumulated profits to €540,905. Shareholder funds at the end of last year stood at €6.1m.

The group’s bank loans increased from €9.5m to €12.2m. Loans from shareholders remained at €2.5m.

Mr Griffin was unavailable for comment yesterday.