€9m losses for owners of Kingsley

The firm that operated the 5-star Kingsley hotel in Cork — which shut down due to extensive damage caused by the 2009 floods — had accumulated losses totalling €9.3m at the end of 2011.

Last month, Savills, instructed by receiver Deloitte to Kingsley Hotel Ltd, put the hotel up for sale with a guide price of €6m.

Accounts just filed by the firm to the Companies Registration Office for 2011, 2010 and 2009 show that the firm’s accumulated losses had increased to €9.354m in the 12 months to the end of December 2011.

This followed the firm’s loss of €1m in 2011 and modest loss of €64,000 of 2010.

However, the accounts for 2009 show that the firm recorded a loss of €7m that year and this followed a loss of €2m in 2008.

A note attached to the 2011 accounts states: “Due to the extensive damage caused by the flood to the hotel complex, it has not recommenced trading. The group no longer has the support of its financiers and receiver was appointed to the company’s parent company in July 2012.”

The note adds that the company “settled with its insurance company in 2010. The settlement was reached on an all-inclusive basis. The directors have provided a best estimate in relation to the breakdown of the amounts and this has been recorded in the financial statements”.

The accounts do not disclose what amount was received from the firm’s insurers.

A note attached to the 2009 accounts stated that the firm had entered talks with insurers, but because of a delay in the negotiation process, it was unable to proceed with remedial repairs.

The note added that the 131 bedroom hotel had not been able to obtain flooding insurance.

The three sets of accounts were signed off by directors, Thomas McCarthy and Tom Kelly on May 20, 2013.

The company had been struck off and an application has been lodged to restore its status to the register. Prior to recent days, the firm had not filed accounts since April 2010.

The sale of the Kingsley Hotel includes an adjoining site extending to approximately 2.25 acres and previously had planning permission for a student apartment complex.

Tom Barrett, head of hotels and leisure at Savills Ireland, could not be reached for comment yesterday.

However, speaking last month, he said: “We are confident that the Kingsley Hotel will attract very strong interest from both domestic and international buyers.”