Shelbourne dramatically cuts losses as legal battle ends
Published 08/10/2012 | 05:00
Dublin's Shelbourne Hotel is close to breaking even after dramatically cutting losses in 2011.
The turnaround comes after the company that runs the business ended a legal battle with the building's owners.
Accounts just filed show pre-tax losses were €104,282 last year, compared with €7.6m in 2010.
The five-star Shelbourne overlooking St Stephen's Green is run by Torriam Hotel Operating Company, a subsidiary of global hotels giant Marriott International.
Torriam's revenues are made up of management fees and payroll services.
Accounts just filed with the Companies' Office show Torriam sharply narrowed its losses in 2011 despite only a modest rise in turnover. Revenues increased from €9.3m to €9.4m in the 12 months to the end of December last.
The chief factor behind the 2010 loss was the €7.5m costs to Torriam of a legal case taken by the hotel's owner, Shelbourne Hotel Holdings Ltd (SHHL).
The case centred on Torriam's fulfilment of obligations arising out of the parties' 20-year management agreement for the operation of the Shelbourne.
Accounts just filed reveal that the case went to arbitration in November 2010.
The arbitration tribunal dismissed SHHL's claim, according to the accounts.
The €7.5m cost associated with the case comprised Shelbourne and Torriam's legal, professional fees and arbitration costs, it states.