The Irish arm of no-frills hotel chain, Travelodge last year plunged into the red to record pre-tax losses of almost €500,000.
The loss recorded by Smorgs (Ireland) Ltd follows only one year after the firm’s two owners, Richard O’Sullivan, from Rathmines, and Seamus McGowan from Foxrock in Dublin, enjoyed a share windfall of €15m from the business.
Mr O’Sullivan, 48, an accountant, received the largest amount through his two-thirds share of parent, Smorgs Ltd while Mr McGowan holds the remaining one-third of shares.
According to new accounts lodged by Smorgs (Ireland) Ltd, the firm recorded the pre-tax loss of €480,857 in the 12 months to the end of Mar 31 this year after recording a modest pre-tax profit of €20,549 in fiscal 2012.
The two Dublin businessmen purchased the Travelodge franchise here along with its eight properties in May 2004.
Today, the budget hotel business comprises 12 hotels, with five hotels in Dublin, two in Limerick and hotels in Belfast, Derry, Galway, Waterford and Cork.
The firm prides itself on its no-frills service with no biscuits or teapots for hotel guests in their rooms.
The low-cost model results in competitive room rates and was yesterday advertising rooms starting from €29.
However, the no-frills model was not immune to the recession last year as the directors state that “the company has continued to experience difficult trading conditions as over-capacity and weak consumer sentiment constrained demand”.
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