Two airport hotels in €75m deal sold for knockdown €5.4m
The hotel group that bought three airport hotels from the Dublin Airport Authority for around €75m nine years ago received €5.42m for two of the hotels last year.
In 2006, the CG Hotel Group purchased the two hotels at Dublin and Shannon airports along with a third, the former Great Southern hotel at Cork Airport,for around €75m.
New accounts show that CG Hotels received €1.92m for the sale of its Cork hotel and €3.5m for the sale of its Shannon hotel last year.
The group has retained its best performing hotel, the Radisson Blu at Dublin Airport, and the accounts show that the hotels' sale produced a profit of €3.8m upon disposal.
The accounts show that the Cork hotel had a book value of €613,476 on disposal with the Shannon property having a book value of €868,124.
The profit on the Cork hotel sale was €1.2m, with a profit of €2.6m on the Shannon hotel sale.
The profit from the sale of the hotels contributed to CG Hotels Ltd and subsidiaries recording a pre-tax profit of €5.2m last year.
The directors state that the proceeds of the sale of the hotels will go towards paying down bank debt.
The firm's bank debt at the end of last year totalled €22.2m - a reduction from the €29m at the start of the year.
Revenues at the firm reduced by 4pc, from €13.6m to €13.1m.
Operating profits increased by 29pc, from €1.4m to €1.8m, with the profits taking account of non cash depreciation costs of €798,157.
The firm's shareholder funds stood at €5.3m with its cash reducing from €2.4m to €2m.
A note attached to the accounts states that "while the results for the year have improved, the group remains susceptible to changes in local market conditions".
The note adds: "The directors have prepared a financial plan including details cash flow projections which assume that the hotels will continue to generate operating cashflows. In 2015, the group has recorded operating profits."
The directors say that based on the disposal of the two hotels and improved results, there is no longer any significant doubt over the firm's going concern.
The numbers employed last year fell from 147 to 130 with staff costs dropping from €4.83m to €4.26m.
The directors are listed as Alan McIntosh, Ben Walsh and Patrick Coyle and remuneration for directors increased from €316,486 to €351,170.