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Family owned hotel firm secures write-down on debt

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The family-owned firm that owns the Mespil hotel in Dublin has secured a write-down on its bank debt

The family-owned firm that owns the Mespil hotel in Dublin has secured a write-down on its bank debt

The family-owned firm that owns the Mespil hotel in Dublin has secured a write-down on its bank debt

The family-owned firm that owns the Mespil hotel in Dublin has secured a write-down on its bank debt.

New accounts filed by the Kidney-owned Mespil Hotel Ltd show that pre-tax profits increased by 38pc from €813,858 to €1.12m in the 12 months to the end of September 30 last.

According to the firm's directors' report, "subsequent to year end, bank borrowings were refinanced at a discount and a charge was registered in favour of Bank of Ireland".

No details are provided on the size of the write-down. However, documents concerning the charge show it relates to a floating charge over all Mespil Hotel Ltd's undertakings and assets and a fixed charge over the 254-bedroom Mespil Hotel property.

The directors state that as in previous years, "all of the retained profits were applied servicing the company's debt".

The firm's bank loans reduced last year from €9.258m to €8.698m.

The company's gross profit increased by 9pc, from €5.69m to €6.2m while net operating profit increased by 22pc despite an increase in administative costs.

The firm's accumulated profits stood at €16.9m.

Lee, Denis and John Kidney are accompanied on the board by Martin Holohan.

Directors' remuneration almost doubled, from €329,525 to €602,347.

The Kidney family own the Lee Hotel group and profits at the group's four star Sligo Park Hotel last year decreased by 27pc from €261,095 to €190,273.

This followed gross profit increasing by 23pc from €3.891m to €3.933m.

The firm paid a dividend of €210,000. Parent firm Lee Hotels is unlimited and doesn't publish accounts.

Irish Independent