Dublin's Merrion Hotel Experienced Pre-Tax Loss Last Year
The latest accounts for the company that operates that Dublin's Merrion Hotel, Merrion Hotel Ltd, reveal that the Merrion experienced a pre-tax loss of €4.06 million last year due to the impact of the COVID-19 pandemic on trading. This compared with a profit of €2.8 million a year earlier.
As reported by The Irish Times, revenues declined by 31.6% from €25.6 million to €17.5 million in the 12 month period. Its income was bolstered, however, by €6.3 million from apartment sales at the prime city centre site.
Businessman Lochlann Quinn has transferred his 25%t shareholding in the Merrion Hotel to his children, the accounts reveal.
The accounts reportedly state that Quinn, who is a former chairman of both AIB and ESB, transferred his shares to his children post the October 31, 2020, year end.
Quinn co-owned the property with fellow businessman Martin Naughton, who is the founder of the successful Glen Dimplex electrical goods business, and the Hastings Hotel Group in Northern Ireland.
The accounts reportedly also show that shareholder loans amounted to €27.8 million at the year end, which was repayable on demand. Some €33.9 million in shareholder loans had been outstanding a year earlier.
Just under €14 million was owed to the Hastings Hotel Group, with €6.97 million owed to each of Mr Quinn and Mr Naughton. The hotel company also owed €23 million in bank loans at the year end.
Due to COVID-19 lockdown restrictions, revenues from accommodation plummeted from €15.8 million to €5.4 million, while income from food and beverages reduced from €8.6 million to €4.9 million.
Leisure centre income increased to €344,694, rental revenue more than doubled to €322,267 but income from "other" activities declined to €227,710 from €799,791, the accounts state.
The Merrion Hotel comprises 123 rooms and 19 suites, and houses the two-Michelin-star Restaurant Patrick Guilbaud. Staff numbers last year reduced from 327 to 206, with the bill for wages and salaries reduced by €4 million to €5.3 million. Directors emoluments were unchanged at €120,000.
The directors reportedly stated that the business was adversely affected by the COVID-19 pandemic, but reportedly said, "We believe we can recover revenue streams and regain profitability when vaccinations are widely provided."
© 2021 Hospitality Ireland – your source for the latest industry news. Article by Conor Farrelly. Click subscribe to sign up for the Hospitality Ireland print edition.