Profits soar at Galway Radisson hotel
Pre-tax profits at the four-star Radisson Blu hotel in Galway, which was built by Bernard McNamara, increased sixfold to €4.2m last year.
The sharp rise in pre-tax profits is due in part to €2.68m that was owed by the hotel company Shorelark to firms co-owned by McNamara being written off. That's because the amounts due are now statute-barred.
A note attached to the accounts shows that €1.7m owed to the now-dissolved McNamara firm Castlehope was written off, as was €977,592 to another dissolved McNamara firm, Adenbell.
The accounts state that the amounts owed are now statute-barred, meaning the company cannot be sued in relation to them, and the firm recorded an exceptional gain of €2.68m as a result.
Last year was very good for the hotel - boosted by business from the annual Galway Races and the Galway International Arts Festival. The hotel's gross profit during the year increased by 6pc - going from €12.5m to €13.3m. This contributed to the firm's operating profits more than doubling, from €713,457 in 2014 to €1.56m last year.
Rezidor Hotels - under the Radisson Blu brand - operate the 272-bedroom hotel on Shorelark's behalf and, in 2015, received from Shorelark €1.14m in management fees and contributions to a Rezidor Hotel Group marketing fund.
Mr McNamara resigned as a director of Shorelark on February 16, 2011. Mr McNamara's long-term business partner, the hotelier and developer Jerry O'Reilly, is a shareholder and remains a director of the firm.
The profit last year contributed to the firm's accumulated losses reducing from €9.44m to €5m. Numbers employed totalled 169 with staff costs at €4.85m.