Outstanding loan sees Galway Bay Hotel record €18m debt
A popular Galway hotel had net debts totalling over €18m in the year to the end of last February.
The debts at the Galway Bay Hotel in Salthill relate primarily to an outstanding bank loan. But hotel management has stressed that the hotel's bank commitments are more than sustainable.
John O'Sullivan, hotel group chairman, said: "We've a very strong relationship with our bank where the whole loan is structured in a way that the company can afford.
"The hotel has been meeting all of its banking commitments right through the last number of years, even since the world changed back in 2008. We don't see any difficulty there."
The four-star facility largely broke even for the year, incurring a loss for the financial year of €181,017, compared to €67,833 in 2011.
Accounts for the 12 months to the end of February show that the hotel, whose registered address is in Athlone, has net assets worth €7.58m. But this is down from the €12.57m recorded in the 2011 accounts.
The hotel managed to reduce its net debt position by €407,871 over the course of the year.
The hotel had an operating profit of €1.4m.
The Galway Bay Hotel is part of a group that also includes The Hodson Bay Hotel in Athlone and the Sheraton Athlone Hotel.
Mr O'Sullivan said they had at all times made their capital and interest payments.
The hotel had €125,661 in cash at bank and in hand.