Cavan's Slieve Russell hotel enjoys 'staycationer' boost with profits of €2.4m

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Cavan's Slieve Russell Hotel Enjoys 'Staycationer' Boost With Profits Of €2.4M Cavan's Slieve Russell Hotel Enjoys 'Staycationer' Boost With Profits Of €2.4M
‘Staycationers’ contributed to a former Sean Quinn hotel, the Slieve Russell recording pre-tax profits of €2.4m last year
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Gordon Deegan

‘Staycationers’ contributed to a former Sean Quinn hotel, the Slieve Russell recording pre-tax profits of €2.4m last year.

According to directors for Slieve Russell Hotel Property Ltd, the Co Cavan hotel "traded very well" from July to September 2020 with the hotel attracting many Irish guests who enjoyed ‘staycations’ here.

However, across the 12 months to the end of June 2021, revenues were down sharply at the hotel company due to Covid-19 enforced shutdowns.

The latest accounts show that the firm recorded revenues of €6 million for the year compared to €17.28 million for the prior 18 months.

On a pro-rata 12-month basis, revenues were down 48 per cent and the directors point out that from October 2020 to June 2021, the hotel was only open for essential services with the except of a number of weeks in December 2020.

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The hotel firm recorded an operating profit of €2.96 million and this was chiefly due to a non-cash reversal of a prior year impairment of €2.13 million and other operating income of €2.45 million.

The 'other operating income' consisted of Government Covid-19 wage subsidy scheme payments and the Covid Restrictions Support Scheme (CRSS).

Numbers employed by the firm last year declined from 217 and 208 as staff costs declined from €8 million to €3.75 million. Pay to key management personnel totalled €566,000.

Pre-tax profit

The hotel company recorded a pre-tax profit of €2.4 million after incurring interest charges of €542,000. The pre-tax profit of €2.4 million followed a pre-tax loss of €843,000 in the prior period.

The directors state the firm’s operational budget for the current year to the end of June 2022 indicates a positive Earnings Before Interest Tax Depreciation and Amortisation (EBITDA).

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They state that the board has continued its investment into the property in 2021 and 2022 in order to ensure that the property is maintained to the highest possible standard.

At the end of June 2021, the amount owed by the hotel firm to credit institutions had reduced from €71.34 million to €68 million and the directors state that they acknowledge that the liabilities owed to IBRC (in special liquidation) are significant and are in ongoing dialogue with the bank in connection with the facilities.

With the collapse of the Quinn empire, the Irish Bank Resolution Corporation (IBRC), formerly Anglo Irish Bank, assumed control of the Slieve Russell hotel when a share receiver was appointed to the hotel firm in April 2011.

The hotel was the setting for Sean Quinn’s daughter, Ciara’s lavish wedding in 2007, where the 400 guests were treated to a six-foot tiered wedding cake that was baked in New York and packed into 20 boxes, then flown to Ireland.

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