Affordable Hotels In Carolina Beach|"Killarney Hotels Ltd Sinks Into The Red"

Source             :     independent.ie
Category        :    Affordable Hotels In Carolina Beach
By                  :    Gordon Deegan
Posted By     :    Hotels Carolina Beach NC

Affordable Hotels In Carolina Beach

A hotel group that operates two five-star hotels in Co Kerry plunged deeper into the red last year to record pre-tax losses of €36.97m.Killarney Hotels Ltd operates the award-winning, five-star The Europe Hotel & Resort and the five-star, 102-bedroom Dunloe Castle Hotel, along with the four-star Hotel Ard na Sidhe. Now, accounts recently filed by the Swiss-owned firm to the Companies Office show that the firm recorded the loss after writing down its property by €28m. The latest loss is more than three times the pre-tax loss of €11m in 2011. And it comes despite revenues at the company increasing by 26pc to €10.69m in the 12 months to the end of December last.

However, costs also increased by 8pc, from €15.3m to €16.6m. According to the directors' report, they "consider the performance of the company to be unsatisfactory, although in line with expectation". The figures show that the company recorded an operating loss in 2012 of €5.9m and this followed an operating loss of €6.9m in 2011. The accounts include a depreciation charge of €8m.The average numbers employed by the group increased from 121 to 125 with wage costs increasing from €4.87m to €5.6m. In their directors' report, they state that "though the Irish tourism sector is experiencing a revival, there continues to be challenges in the hotel industry in Ireland. "Although the company made a loss for year of €35.7m, the directors have continued to prepare the statements on a going concern basis as they have received assurances from the company's parent, Liebherr Hotels AG, that it will provide the company with funds as and when required to enable it to continue trading for the foreseeable future," the report said.

The company's fixed assets are valued at €63.8m and in a note attached to the accounts, it states that "while there is little specific evidence to support property values at present, the directors have considered a number of factors in order to confirm and approve the carrying value of properties at December 31, 2012". The directors state that they believe The Hotel Europe and Resort has long-term value, reinforced by a recent refurbishment. The hotel was winner of the Best Resort Hotel in 2012. The figures show that the group generated €10.1m of its revenues through its hotels and €585,882 through the operation of a 200-acre farm. The accounts show that the company's parent, Liebherr Hotels AG, loaned the firm an additional €9m during the year to bring to €44m owed by the firm to Liebherr Hotels.

Source:independent.ie/business/irish/killarney-hotels-ltd-sinks-into-the-red-with-3697m-pretax-loss-29641542.html