Shelbourne Hotel operator sees 13.5% profit increase

The company that operates the five-star Shelbourne Hotel in Dublin last year increased its operating profits by 13.5% to €37,117.

Newly-filed accounts for management firm, Torriam Hotel Operating Company Ltd, show it recorded an operating profit for the second successive year, while revenues grew by 8% to €12.2m.

A subsidiary of the hotel giant Marriott International, Torriam’s revenues are made up of management fees and payroll services.

The firm recorded a pre-tax loss of €122,636 after incurring interest payments of €159,753.

Underlining the increased activity at the hotel in 2014, the numbers employed by Torriam increased from 444 to 481. That resulted in staff costs rising from €11.32m to €12m.

A breakdown of the numbers employed show that catering and housekeeping account for 406 with 39 in management and 36 in administration.

The figures show that directors’ remuneration last year went up from €396,319 to €401,069. According to the directors’ report “costs for 2014 have increased due to increased activity and related services provided during the year”.

“The directors are pleased with the financial and operating performance of the company for the year,” it added.

The company made a gross profit last year of €76,334 following a gross profit of €72,827 in 2013.

However, the pre-tax loss increased accumulated losses to €12m.

The company had net liabilities totalling €9.5m at the end of last year and a note attached to the accounts states that the company’s ultimate parent has confirmed it will continue to support the business as and when required to enable the company to meet its commitments.

In January of last year, US property investment firm Kennedy Wilson secured control of the 265-bedroom Shelbourne after acquiring its debt for $152m (€110m). Kennedy Wilson Europe’s President and CEO, Mary Ricks said at the time that the “iconic asset” has “significant value enhancement potential”.

Prominent businessmen including Bernard McNamara, Bernard Doyle, Jerry O’Reilly, John Sweeney, and the late David Courtney purchased the property for €140m in 2004 and spent millions more on the hotel’s refurbishment.

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