Quinn's luxury Slieve Russell Hotel posts loss of €4.5m for 2008
Sean Quinn's luxury four-star Slieve Russell hotel has posted a loss of €4.5m for 2008, blaming a downturn in the hospitality industry and higher wage costs. The company was forced to hold an extraordinary general meeting (EGM) because of its financial position.
Turnover at the hotel dropped to €17.5m from €18.2m, a slide of 4pc.
This resulted from "challenges faced during the year with reduced activity in the hospitality sector'', said the accounts for the hotel .
The Cavan-based hotel has now been loss-making for the last two years.
"Gross margin was impacted mainly by higher input costs including payroll and energy,'' said the company.
"It promised to have a continued focus on costs to ensure the hotel remains competitive within the hospitality sector.
"The directors are satisfied with the financial position of the group, notwithstanding its deficiency in shareholder's funds,'' the company said. This deficit stood at €6.4m according to the accounts.
The company behind the hotel had total creditors of €74.1m, with bank loans, repayable on demand, of €65m.
This loan is supported by a charge over the company's assets, guarantees from other Quinn companies and Sean Quinn himself.
Because the net assets of the company were not more than half of the share capital in the firm, an EGM had to be held. It took place on March 13, 2008.
The hotel is set in 300 acres and is attached to a golf and country club.
According to its website, it has 222 bedrooms on offer to the public.
This week the Irish Independent revealed that Quinn Finance, the company that funded the Quinn family stake in Anglo Irish, also had to hold an EGM due to its financial position and weakened balance sheet.
This company is still trading, Quinn Group indicated this week.