Sale of hotel at Cork Airport boosts group’s operating profits to €1.4m

Operating profits at the group that operates the Radisson hotels at Dublin and Shannon airports last year increased by 54% to €1.4m.

The CG Hotel Group purchased the hotels at Dublin and Shannon, along with a third former Great Southern hotel at Cork Airport, for around €75m from the Dublin Airport Authority in 2006.

Last year, the group sold the Cork Radisson Blu hotel to iNua Hospitality.

The accounts state that the hotel, that was guiding at €8m, was sold at a profit.

The new accounts show CG Hotels Ltd and subsidiaries enjoyed an increase in business in the 12 months to the end of December last, with revenues going up by 10%, from €12.39m to €13.65m.

The firm recorded pre-tax profits of €844,630 after net interest payments of €560,000 are taken into account.

In a note attached to the accounts, CG Hotels states that “whilst the results for the year have improved, the group remains susceptible to changes in local market conditions. The directors have prepared a financial plan including detailed cashflow projections which assume that the hotels will continue to generate operating cash flows. In 2014, the group has recorded operating profits.”

The directors state that based on the improved results to date and the post-year disposal of the Cork business, there is no longer significant doubt over the group’s “going concern”.

The operating profit last year takes account of an €835,666 non-cash depreciation charge while remuneration to directors last year increased by 65%, from €191,667 to €316,486.

Staff numbers, including executive directors, increased from 141 to 147 with staff costs rising from €4.44m to €4.89m.

The firm’s cost of sales increased from €10.1m to €10.9m while the group’s cash increased from €1.66m to €2.44m, with shareholder funds standing at €111,865.