Staycations and weddings driving revenues at Waterford Castle resort

Chief financial officer says here are still bumpy waters ahead for the hospitality industry

Waterford Castle Hotel is forecasting strong business for summer 2022.

Domestic tourism helped drive revenues at the Waterford hotel resort last year.

Chief financial officer of Waterford Castle Hotel and Golf Club Ltd Louise Hurley said revenues from June to December last year were mainly driven by staycation business during that period.

“We have a very strong wedding business and we managed to retain most of our postponed weddings in 2020/2021 by postponing them into 2022 and our leisure business is forecasting strong for summer season 2022,”  Ms Hurley said.

“However, there are still bumpy waters ahead for the hospitality industry.”

She added that these include the impacts of staff shortages, increased labour costs, along with inflation due to Brexit and Covid-19.

“This inflation has now been magnified in 2022 by the Ukrainian war which will put a lot of pressure on our business in 2022 and for the foreseeable future,”  Ms Hurley said. 

Suppliers to our industry are having to increase their costs to stay in business and they are naturally passing these costs onto ourselves.

Ms Hurley was commenting on new accounts for the business for the pandemic hit 2020 which show that pre-tax losses totalled €971,886 and follow pre-tax losses of €827,548 in 2019.

The firm’s losses rose as revenues slumped by 47% from €5.9m to €3.13m.

A note attached to the accounts stated that the company in 2021 continued to be exposed to the impact of Covid-19 and sustained periods of closure causing a reduction in turnover.

The business recorded an operating loss of €396,215 for 2020 and interest payments of €575,671 resulted in the pre-tax loss of €971,886.

The loss also takes account of non-cash depreciation costs of €441,869.

Businessman, Seamus Walsh bought the hotel resort, which sits on a private island, from NAMA for a reported €6m.

The accounts show that the business received Government grants of €905,397 in 2020 that included €848,709 in Covid-19 wage supports.

Number of employees reduced

Numbers employed reduced from 139 to 89 as staff costs declined from €2.85m to €1.81m.

Pay to key management personnel, including directors and managers, totalled €286,397 for 2020 — down sharply on the €404,024 paid out in 2019.

The accounts show that the firm owes Seamus Walsh €7.36m and €2240,000 interest payments due to Mr Walsh was accrued during the period.

The accounts state that Mr Walsh has provided an all sums foreign guarantee of €1.5m in respect of a bank loan.

The accounts were signed off on February 18, and at the end of 2020, the business had a shareholders’ deficit of €2.86m.