Shelbourne firm suffers €301k losses

Pre-tax losses at the company that manages the five-star Renaissance Shelbourne hotel last year almost tripled to €301,122.

Accounts filed with the Companies Office by Torriam Hotel Operating Company Ltd (THOCL) show the firm’s pre-tax losses increased by 190% from €104,282 to €301,122.

The increased loss occurred in spite of revenues rising from €9.416m to €9.964m in the 12 months to the end of December last.

A subsidiary of international hotel giant, Marriott International, Torriam’s revenues are made up of management fees and payroll services.

The chief factor behind the increased loss was net bank interest payments increasing from €190,796 to €285,364.

The figures show that the firm recorded an operating loss of €15,758 last year following an operating profit of €85,514 in 2011.

Numbers employed at the hotel last year increased from 357 to 384 with staff costs last year increasing from €9.3m to €9.9m.

The figures show that directors’ remuneration last year decreased from €185,250 to €162,868.

The filings show that the company made a gross profit last year of €65,197, following a gross profit of €57,766 in 2011.

The loss last year increased the company’s accumulated losses to €11.78m.

The company had net liabilities totalling €9.3m at the end of last year. A note attached to the accounts states the company’s ultimate parent company has confirmed it will continue to support it to enable it to meet its commitments.

The company that owns the hotel, Shelbourne Hotel Holdings Ltd (SHHL), had accumulated losses totalling €211.9m at the end of 2011 that included a €155m write-down in the property.

At the end of December 2011, SHHL owed a total of €289.2m to its creditors, including bank loans totalling €138.6m.

The firm recorded an operating profit of €3.1m in 2011 as revenues rose to €23.1m. However bank interest payments totalling €5.6m resulted in pre-tax losses more than doubling to €2.5m.