Five-star hotel narrows pre-tax losses to €2.66m

The five-star Westin Hotel on Dublin’s College Green narrowed its pre-tax losses last year by 17% to €2.66m.

Five-star hotel narrows pre-tax losses to €2.66m

Newly-filed accounts for Westin Hotels Ireland Ltd also show a 10% increase in revenues from €12.62m to €13.84m for 2013.

Last month, it emerged that US billionaire, John Malone purchased the hotel for €65m, with it set to be operated by the Lalco Hotel group under a franchise agreement with Westin Hotels and Resorts. The deal is expected to be concluded before the end of this month.

The 163 room hotel is run by US-based Starwood Hotels and Resorts and the accounts show that the hotel received an additional €3.7m from Starwood International Finance Europe Ltd during 2013, following the hotel receiving an additional €4m from the Starwood firm in 2012.

According to the directors’ report accompanying the accounts: “While 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.”

It added: “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.”

Employee numbers have remained relatively stable considering current conditions, the directors said.

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 resulting in a drop in revenue.

The latest figures show that last year, the Westin’s cost of sales increased from €6.54m to €6.96m with operating expenses increasing from €8.89m to €9.06m.

The firm recorded an operating loss of €2.18m for the year.

Interest payments totalling €476,756 — up by 18% on the previous year — contributed to the losses.

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