Billionaire Malone makes €10m profit on Irish hotel
Published 29/10/2016 | 02:30
US billionaire John Malone last year booked a €9.34m gain on the value of his new five-star InterContinental Hotel in Dublin's Ballsbridge.
In March of last year, the businessman paid a reported €50m for the hotel that formerly operated under the Four Seasons banner.
New accounts for the hotel show the firm recorded a pre-tax profit of €10.56m in the 15 months to the end of December last - largely as a result of the €9.34m gain in the value of the property following an independent revaluation.
The accounts show that the firm's gross profit during the 15 months totalled €10m - a 61pc increase on the gross profit of €6.2m in the prior 12 month period.
The company also benefited from a €2.1m gain arising from the forgiveness of a €1.5m inter-company loan and the write back of accruals totalling €611,781.
A note states that the exceptional items occurred as a result of the sale of the company during the financial period.
Numbers employed by the hotel fell from 334 to 306, with staff costs reducing from €11.88m to €6m.
The pre-tax profit takes account of non-cash depreciation costs of €442,996.
The €9.3m increase in value of the hotel property resulted in a book value of €22.5m at the end of December last.
The InterContinental was sold to Mr Malone by London & Regional which acquired the hotel in 2011 for €15m - a figure believed to be about a quarter of what it cost to develop it.
Mr Malone recently added the Spencer, Morgan and Beacon hotels to his growing Irish portfolio that also includes the Westin Hotel in Dublin.