Mespil Hotel firm secures writedown on bank debt

The family-owned firm that owns the Mespil Hotel in Dublin has secured a writedown on its bank debt.

New accounts filed by Mespil Hotel Ltd show pre-tax profits at the firm increased by 38% from €813,858 to €1.12m in the 12 months to the end of September 30 last.

According to the firm’s directors’ report, “subsequent to year end, bank borrowings were refinanced at a discount and a charge was registered in favour of Bank of Ireland”.

No details are provided on the size of the writedown. However, documents show it relates to a floating charge over all Mespil Hotel Ltd’s undertakings and assets and a fixed charge over the 254 bedroom Mespil Hotel.

The report states “the Dublin hotel market continued to improve during the year resulting in an increase in gross profit of 9%. Net operating profits improved by 22% despite an increase in administrative costs during the year.”

As in previous years, “all of the retained profits were applied servicing the company’s debt,” it states.

Bank loans fell from €9.258m to €8.698m.

The directors state they are satisfied with the outcome for the year and believe the continuing medium term outlook for the Dublin market in positive.

Gross profit increased by 9%, from €5.69m to €6.2m. Accumulated profits at the end of September 2013 stood at €16.9m.

The firm is controlled by the Kidney family with Lee, Denis and John Kidney accompanied on the board by Martin Holohan.

Directors’ remuneration, including pension payments, last year went from €329,525 to €602,347.