Parent Company Of Dublin's Citywest Hotel Records Operating Profit For 2020
Published on Sep 27 2021 12:44 PM in Hotel tagged: Trending Posts / Tetrarch / HSE / Tetrarch Capital / Citywest / Health Service Executive / Citywest Hotel / Alva Glen Investments Ltd / Citywest Hotel Group
New accounts filed by Alva Glen Investments Ltd and subsidiaries have revealed that the Citywest Hotel Group has recorded an operating profit of €3.34 million for 2020 after recording an operating loss of €222,599 in 2019.
As reported by The Irish Times, revenue at the Tetrarch Capital-owned Citywest Hotel Group decreased by 7.5% from €30.6 million to €28.3 million last year; the business recorded a pre-tax profit of €244,496 in 2020 after interest payable charges of €2.96 million and a non-cash property write-down of €140,000 were incurred; employment numbers decreased by 222 from 392 to 170 last year; and staff costs decreased from €9.8 million to €6.28 million.
Dublin's Citywest Hotel will reportedly not be open to guests until 2022 due to its continuing role in the Health Service Executive (HSE) effort against COVID-19.
A spokesman for the Citywest Hotel Group reportedly said that the HSE contract with the property has been extended and is now not due to expire until early 2022.
The Citywest Hotel Group returned reportedly had an initial €21 million deal with the HSE to use the hotel as a COVID-19 isolation centre, which reportedly boosted it profit and revenue last year.
The 756-bedroom Citywest Hotel temporarily ceased to operate as a hotel in March of 2020 and in recent months has also operated as one of the HSE’s main vaccination centres.
Directors reportedly noted that the group "has continued to be loss-making since October 2020 when the HSE signed an extension to June 30th, 2021, at a materially lower rate".
The directors reportedly said that the group had significant capital costs in respect of the HSE licence agreement, and reportedly also pointed out that the HSE had an option to occupy another building on the Citywest campus which the group "made fit for habitation at a cost of several million euro", but the authority reportedly did not take up that option.
The group spokesperson reportedly said that the business continues to be loss-making under current licence arrangements with the HSE, which are due to expire in early 2022, and, "As international travel for both leisure and business returns, we are optimistic that Citywest Hotel is set for a return to the strong position it held pre-COVID."
"Positive Rebound" And No Government Supports
The spokesperson reportedly added that the hotel is seeing a "positive rebound" in enquiries from the domestic market, and the directors reportedly also said that they did not avail of any government supports in relation to COVID-19 in 2020.
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