Gresham profits rise as sell-off talks continue

Gresham Hotel Group has said that preliminary 2003 pre-tax profits have risen to €1.7m, which is 40% higher than the figure recorded for the 11 months to 2002.

The sale of three Ryan hotels produced an exceptional gain of €239,000, while the funds generated helped to halve the debt-equity ratio to 27%.

Turnover slipped from €50.7m to €47.9m, reflecting the sale of the three hotels in Galway, Limerick and Killarney for more than €35m.

Room occupancy rate was even at €76, while the average room rate dropped slightly to €84.

The hotel group said it is still in talks with a group of investors to sell the company even though on Wednesday the group reduced its potential offer for the company because the business's property is worth less than the bidders expected.

The group cut its offer to €1.35 a share, valuing the company at €107.3m, after increasing its bid to €1.45 a share from €1.35 in February.

The new offer is conditional on acceptance from investors accounting for at least 80% of Gresham's shares.

The hotel company said it is still discussing the offer with the bidders.