Pre-tax losses at Shelbourne drop 98%
Accounts filed with the Companies Office by Torriam Hotel Operating Company Ltd show that the firm sharply narrowed its losses after revenues increased marginally, from €9.3m to €9.4m, in the 12 months to the end of December last.
The €104,282 pre-tax loss last year follows a loss of €7.6m in 2010.
The chief factor behind the 2010 loss was €7.5m costs incurred by Torriam associated with a legal case taken by the hotel’s owner, Shelbourne Hotel Holdings Ltd.
The case concerned Torriam’s fulfilment of obligations arising out of the parties’ 20-year management agreement for the operation of the hotel.
The 2011 accounts state that the arbitration tribunal on Nov 10, 2010, dismissed the claim by Shelbourne Hotel Holdings Ltd to be entitled to terminate the agreement and the €7.5m costs comprised of the awards to the Shelbourne and Torriam’s legal, professional fees and arbitration costs.
A subsidiary of hotel giant Marriott International, Torriam’s revenues are made up of management fees and payroll services.
The figures show that Torriam recorded an operating profit of €86,514 last year following an operating loss of €7.7m in 2010.
However, net interest payments totalling €190,796 pushed the firm into the red. The firm’s cost of sales last year increased from €9.2m to €9.3m.
Numbers employed at the hotel last year increased from 323 to 357 with staff costs increasing from €9.2m to €9.3m.
The figures show that directors’ remuneration last year decreased from €208,493 to €185,250.
The company’s accumulated losses increased to €11.4m last year.
Torriam had net liabilities totalling €9m at the end of last year and a note attached to the accounts states that its ultimate parent company has confirmed that it will continue to support Torriam as and when required to enable the company to meet its commitments.
