Losses at Trump Doonbeg resort more than double to €3.59 million

business
Losses At Trump Doonbeg Resort More Than Double To €3.59 Million Losses At Trump Doonbeg Resort More Than Double To €3.59 Million
The impact of Covid-19 closures and restrictions resulted in pre-tax losses more than doubling at the Donald Trump owned golf resort. Photo: PA Images.
Share this article

Gordon Deegan

The impact of Covid-19 closures and restrictions resulted in pre-tax losses more than doubling at the Donald Trump owned Doonbeg golf resort to €3.59 million last year.

According to new accounts for the company behind the luxury Trump Doonbeg resort, TIGL Ireland Enterprises Ltd recorded the surge in pre-tax losses as revenues tumbled by 68.6 per cent or €8.23 million, from €11.99 million to €3.76 million last year.

The pre-tax loss of €3.59 million for 2020 follows a pre-tax loss of €1.37 million for 2019 - a rise of 162 per cent.

The loss last year takes account of hefty non-cash depreciation and amortisation charges of €1.6 million.

The business last year availed of Government Covid-19 wage supports, and the accounts confirmed that the company received €496,565 in Government grants last year.

Workforce dip

The business last year lost more than half of its workforce, as numbers employed declined by 118 from 230 to 112 as staff costs reduced €6.5 million to €3.5 million.

Advertisement

According to the directors’ report, the hotel and resort was closed for long periods in 2020 due to Covid-19 restrictions.

They state that “this has had a direct impact on the group’s results for 2020”.

They add that the restrictions continued into 2021 and the hotel and resort re-opened in June, and the business “has returned to pre-Covid-19 levels of trading since”.

They add: “Nonetheless, the ongoing impact of Covid-19 will continue to present challenges and risks for the group and the hospitality sector as a whole.”

Resort upgrades

Eric Trump and Donald Trump Junior are directors of the company. Concerning the resort’s future developments, they stated they are in the process of upgrading facilities at the Trump International Hotel and Golf Links resort at Doonbeg.

They state that “it is expected that this will enhance the customer experience and have a positive impact on the company and group’s trading results”.

On the progress of the business this year, the directors said that with the rollout of Ireland's national vaccination programme and the Government’s re-opening strategy, they are confident that the business can achieve its budgeted results for the remainder of this period and return to normal trading conditions in the near future.

Advertisement

The Trump Organisation has ploughed more than €40 million, including the purchase price, into the resort since it came under the ownership of the Trump Organisation in February 2014.

The new accounts show that a further €1.5 million was ploughed into the resort by its owners last year and this followed a capital contribution of €1.8 million in 2019.

Trump visits

The Trump Organisation purchased the resort for a knock-down price and since then, the former US president Trump has visited the resort seven times.

The most high-profile visit was in June 2019, which was the businessman’s only visit to Ireland while President of the United States.

The two night visit by the then-president provided a wind-fall for the resort when it received €107,625 for providing food and catering to gardaí on overtime protecting the president.

At the end of last year, the company’s shareholder funds totalled €17.8 million. This was made up of €15.4 million in accumulated losses and €33.2 million in other reserves.

The company last year recorded a gross profit of €3.2 million and administrative expenses of €5.69 million offset by ‘other operating income’ of €496,565, resulting in the operating loss of €1.98 million.

Former president Trump and his daughter Ivanka stepped down as directors from the company on January 19th 2017 - one day prior to Mr Trump’s inauguration.

The accounts were signed off by director Eric Trump and General Manager Joe Russell on November 22nd.

Read More

Want us to email you top stories each lunch time?

Download our Apps
© BreakingNews.ie 2022, developed by Square1 and powered by PublisherPlus.com