Dublin’s Regency Hotel firm suffers losses of €15.5m

The firm that operates the Regency Hotel in Dublin plunged into the red in 2013 to record losses of €15.5m.

The loss sustained by the company that operates the hotel, Regan Development Ltd, arose from the writing off of €15.89m owed to it by a connected company.

The accounts show that before the exceptional cost is factored in, the firm’s operat-ing profits fell 68% from €1.38m to €432,985.

The firm, however, has a large amount in accumulated profits and the accounts state that Nama has renewed the firm’s loan facilities on similar terms.

The directors state that sales at the 240-room hotel improved 29% from the prior year due to rises in room rates in the Dublin market and higher occupancy rates.

The hotel is in the Whitehall area of Dublin and is in proximity to Dublin airport.

The directors of the company are listed as James McGettigan, Patricia McGettigan, Brian McGettigan, Maureen O’Connor, James McGettigan jr and Neil McGettigan.

The firm’s gross profit in 2013 fell 28%, going from €5.16m to €3.67m.

Distribution costs of €2.26m and administrative expenses of €976,707 reduced the firm’s profit to an operating profit of €432,985. The firm’s profits were further reduced by interest charges of €60,790.

The accounts show that the firm’s total losses for the year amounted to €16.2m, taking into account an impairment charge of €634,221 and a writedown of €105,286 on an investment property.