€2.9m loss for Shelbourne company
Published 22/10/2010 | 05:00
The company that manages Dublin's landmark Shelbourne Hotel sank into the red last year, posting a €2.9m loss following a 25pc fall in revenues from continuing operations to €9.9m.
Accounts for the managing firm, Torriam, show administrative expenses soared from €3.5m to €6.4m during the year. Torriam is ultimately controlled by the Marriott hotel group.
Torriam was embroiled in legal action in 2008 with the owners of the Shelbourne -- including developer Bernard McNamara and businessman Terry Sweeney. The owners wanted the contract with Torriam terminated by the High Court, claiming the property was being managed in a "shambolic style". They have sought €9m from Torriam, as well as unspecified interest and costs.
Torriam was forced to hand over records of its management of the property and noted that the court case was causing "huge damage" to the hotel.
That same year, Torriam initiated arbitration proceedings against Shelbourne. An arbitration hearing was held in July this year, but the outcome of that hearing is not expected to be known until a later date.