Nama approves plan for loss-making hotel company

Nama has approved a business plan for the loss-making firm that operates the five-star hotel that hosted Brian O’Driscoll and Amy Huberman’s wedding reception.

The couple celebrated at Lough Rynn Castle Hotel, Co Leitrim, in Jul 2010.

Accounts just filed by Lough Rynn Castle Ltd confirm the losses narrowed last year from €145,330 in 2010 to €87,884.

However, hotel director for the Hanly Castle Hotel Group, Clement Gaffney said yesterday the company recorded a trading profit during 2011, and confirmed Nama approved a business plan for the firm that operates Lough Rynn and Kilronan Castle on Nov 2.

He said the trading profit that takes account of rent of €188,000 paid by the firm to owners, Alan and Albert Hanly in addition to non-cash depreciation costs of €87,000.

The figures show however that the celebrity wedding provided no bounce from domestic tourists in 2011 with revenues from domestic visitors down slightly last year.

The abridged accounts do not provide a revenue figure, but Mr Gaffney pointed out that international business resulted in overall revenues increasing by 1%.

“In 2012, significant growth in revenues of 18% has been achieved and current expectations for 2013 are for continued strong growth in international revenues combined with maintaining current levels of domestic business,” he said.

A note attached to the accounts states that the firm has been dependent on former director, Alan Hanly to continue to provide interest free loans to the company.

Lough Rynn employs 66 people and contributes €3.2m annually to the local economy.

Separate accounts for Kilronan Castle Ltd show the hotel recorded a loss of €594,989 in 2011.

However, Mr Gaffney said the hotel recorded a trading profit of €511,000 after taking into account rent of €939,974 paid to the hotel owners and depreciation charge of €172,398.