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Shelbourne Hotel Parent Company Does Not Anticipate COVID-19-Related Financial Impact

Published on May 5 2020 11:01 AM in Hotel tagged: Trending Posts / Kennedy Wilson / Shelbourne

Shelbourne Hotel Parent Company Does Not Anticipate COVID-19-Related Financial Impact

The company that owns Dublin's Shelbourne hotel, Kennedy Wilson Europe, has said that it does not anticipate that its business will experience any material financial impact from the COVID-19 crisis.

According to The Irish Independent, the company said that there is only a "remote possibility" that its financial headroom will be depleted as a result of the crisis.

Strong Cash Balances

The company stated that it has strong cash balances, with €232.5 million at the end of December of 2019, which has been supplemented by disposal proceeds this year.

The Irish Independent quotes the company as saying in its annual report, "If the group wished to further bolster short- to medium-term liquidity beyond its already considerable reserves, it would be able to defer discretionary capital expenditure."

Additionally, the company stated that it does not expect an imminent breach of its banking covenants, and that future cash flows have been forecast and stress-tested, taking conservative assumptions relating to rent collection and tenant performance into account.

© 2020 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.

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