Hoteliers pay €2m to end Four Seasons agreement

The former owners of the five-star Intercontinental Hotel in Dublin last year paid €2m in order to terminate its operating agreement with Four Seasons.

The payment by London & Regional to the Toronto-based global hotel group chain is disclosed in new accounts filed by Ballsbridge Hotel that operates the five-star hotel in Dublin 4.

The accounts for 2014 – just lodged with the Companies Office – show that the €2m payment pushed the business into the red, to record a pre-tax loss of €1.874m.

The hotel recorded an operating profit last year of €303,233 and this followed an operating loss of €663,294 in 2013 – a positive swing of €966,527.

The business returned to operating profit after revenues increased by 17% from €17.74m to €20.88m in the 12 months to the end of September last, though the prior period was for 11 months.

London & Regional, which is controlled by Ian and Richard Livingstone, acquired Dublin’s Four Seasons in June 2011 for €15m, a figure believed to be about a quarter of what it cost to develop the hotel.

The Livingstones made a handsome profit on their investment after a consortium backed by the US billionaire cable television magnate John Malone bought in March the InterContinental Hotel, which had been on the market for an estimated €50m.

The 197-bed luxury hotel was built in 2001 by an 18-member consortium put together by Quinlan Private and known as the Nollaig Partnership.

Ballsbridge Hotel obtained unlimited status in March and in future will not be required to file annual accounts. Numbers employed by the hotel last year increased from 329 to 334, with staff costs going up from €10.74m to €11.88m.

According to the directors’ report section of the accounts, “the company plans to continue its present activities and enhance trading levels. Employees are kept as fully informed as practical about developments within the business.”

The firm’s cost of sales last year increased from €12.75m to €14.67m. The loss last year takes account of non-cash depreciation costs of €686,495 and an operating lease cost of €731,705.

The firm’s accumulated losses last year widened from €5.3m to €7.1m. However, a cash injection of €15.9m from its parent resulted in shareholder funds of €7.6m.