Hotel receiverships paying dividends

The receivership of the €50m five-star Lyrath resort hotel in Co Kilkenny is beginning to pay dividends for the Bank of Scotland.

That is according to new documents lodged with the Companies Office showing that the Bank of Scotland has received an interim distribution of €750,000 through the receivership of the property.

Loans from the bank helped bankroll the development and opening of the Xavier McAuliffe hotel in 2006.

A self-made multi-millionaire, Mr McAuliffe established the Co Kerry-based Spectra group and is part of the consortium that operates the GoSafe Speed vans.

However, in May 2012, the Bank of Scotland appointed Kieran Wallace of KPMG as receiver to the 137-bedroom resort hotel.

The first receiver extracts to be lodged showing how the business has performed show that the hotel generated revenues of €8.845m in the 12 months between May 25, 2012 and May 24, 2013.

The documents show that €750,000 has been paid to the secured creditor in an interim distribution.

The filings show that the receiver has spent €308,525 on management fees; €2.923m on wages; €3.41m to trade suppliers and €1.03m to Revenue over the 12 months.

Separate documents lodged with the Companies Office show that the Lyrath is not the only hotel to be performing strongly under receivership.

New figures show that the five-star Muckross Park Hotel has recorded more revenues in six months this year than it did for the 12 months of 2011.

The figures show the hotel in receivership recorded revenues of €2.88m in the six months between March and September of this year.

The revenues generated during the peak summer period are €100,000 more than the €2.77m revenues the hotel recorded during 2011 — the last period in which the company filed accounts.

Last March, the former star of TV3’s The Apprentice, Bill Cullen and his partner, Jackie Lavin lost control of the hotel in a court battle with ACC Bank.

ACC installed Declan Taite of Farrell Grants Sparks RSM as receiver.

The receiver’s extract lodged by Mr Taite shows the costs associated with operating the hotel and the receivership total €2.43m, leaving a surplus of €442,293.