Five-star hotel plunges into red
The Dylan Hotel in Dublin was one of two Seamus Ross-owned hotels to go into the red in 2010, with separate accounts for the four-star Dunboyne Castle Hotel and Spa in Co Meath recording a pre-tax loss of €1.1m in 2010.
Mr Ross heads up Menolly Homes and the directors’ report on the 2010 performance of the Dylan Hotel states that “the economic downturn continues to affect the tourism sector and the slowdown has impacted on annual turnover”.
The abridged accounts just lodged to the Companies Office for the boutique hotel show that the hotel’s gross profit increased in 2010 from €1.42m to €1.49m.
The figures show that the company recorded the loss of €741,590 in 2010 and this followed a pre-tax profit of €5.8m in 2009. However, the 2009 pre-tax profit occurred after a €7m loan was forgiven.
Addressing the hotel’s going concern status, the directors state that “the company requires the ongoing support of one of its key creditors to continue as a going concern”.
The note continues: “The directors are of the opinion that the support of the key creditor will continue for a period of not less than 12 months from the date the directors approve the financial statements.”
The numbers employed by the hotel declined from 53 to 49 in 2010, with staff costs decreasing from €1.78m to €1.38m.
The loss includes a depreciation charge of €343,074. The company paid €1m under an operating lease in 2010 and a similar amount in 2009.
Separate filings for Fylan Collection Ltd that operates the Dunboyne Castle Hotel show that the company recorded a pre-tax loss of €1.1m in 2010 that followed a pre-tax profit of €3.3m in 2009.
The abridged accounts show that firm’s gross profit increased from €3m to €3.2m in 2010.
The loss in 2010 takes account of depreciation costs of €634,976.
The firm had accumulated losses of €2.7m at the end of 2010.
According to a note attached to the accounts, it states “the company requires the ongoing support of its lenders to continue as a going concern”.
