Travelodge Ireland Faces Loss Of €500k Pre-Tax
Published on Nov 11 2013 2:16 PM in Hotel
In Ireland, Travelodge fell into the red to record pre-tax losses of almost €500,000 in 2012. The losses come after only one year after the firm's two owners, Richard O'Sullivan, from Rathmines, and...
In Ireland, Travelodge fell into the red to record pre-tax losses of almost €500,000 in 2012.
The losses come after only one year after the firm's two owners, Richard O'Sullivan, from Rathmines, and Seamus McGowan from Foxrock in Dublin, enjoyed a share windfall of €15m from the firm.
Mr O'Sullivan holds the largest amount through his two-thirds share of parent, Smorgs Ltd while Mr McGowan received the remaining one-third of shares.
According to new accounts lodged by Smorgs (Ireland) Ltd, the business recorded the pre-tax loss of €480,857 in the 12 months to the end of March 31 this year after recording a pre-tax profit of €20,549 in its fiscal year 2012.
The budget chain hotels consists of 12 hotels, with five hotels in Dublin, two in Limerick and hotels in Belfast, Derry, Galway, Waterford and Cork.
The low-cost model results in competitive room rates and was yesterday advertising rooms starting from €29.
The hotels directors told the Irish Examiner that "the company has continued to experience difficult trading conditions as over-capacity and weak consumer sentiment constrained demand".