Accounts filed with the Companies Office show Westin Hotels Ireland Ltd reduced the losses after revenues increased by 7% from €11.83m to €12.62m in the 12 months to the end of December last.
The pre-tax loss last year followed pre-tax losses of €3.59m in 2011.
The five-star hotel was built by Johnny Ronan and Richard Barrett’s Treasury Holdings.
According to the directors’ report: “Whilst the company is still behind its peak performance, in 2012 the company witnessed an overall improvement in trading conditions with improved daily average rate, increased group business, sporting events and conferences.
“The US being the company’s main feeder market also enjoyed positive growth. The directors are satisfied with the cost saving initiatives put in place by management and are hopeful that trading will improve further in future years.”
The 163-room hotel is run by US Starwood Hotels and Resorts. The hotel received an additional €4m from Starwood International Finance Europe Ltd during 2012, and the maturity of the loan was extended this year to 2016.
Employee numbers have stayed relatively stable, considering current conditions, with the numbers employed remaining at 105. Staff costs last year reduced from €5.2m to €5.1m.
Emoluments to directors last year increased from €259,844 to €338,803.
The loss last year takes account of non-cash depreciation cost of €577,900. The cost of sales increased from €6.26m to €6.54m with operating expenses up from €8.88m to €8.89m.
The firm recorded an operating loss of €2.8m last year and interest payments totalling €401,792 — a 40% increase on 2011 — added to the losses.
Annual lease charges remained static last year at €4.253m.
Accumulated losses climbed to €18.5m, while the firm’s cash increased from €862,805 to €1m.
Outlining the risks facing the firm, the directors point to increased competition in the hotel market; increased operating costs due to rising costs and competition and a general economic downturn.