Radisson profits double to €8.5m
The company which operated the four-star Radisson Blu in Galway almost doubled profits to €8.55m last year.
The chief factor behind the sharp increase in profits at Shorelark was the writing off of €5m it owed to one of the developers of the hotel - builder Bernard McNamara - as the monies owed are now statute-barred.
The hotel was sold for an estimated €50m in October to the MHL Collection backed by US billionaire, John Malone.
The hotel is now to rebrand as the Galmount in 2018 following a decision not to enter a new contract with Rezidor, which operates the Radisson Blu brand.
The accounts show that last year, Shorelark paid Rezidor €1.2m in fees and contributions towards a marketing fund operated by Rezidor. Revenues at the company last year increased by 5pc, going from €14.6m to €15.3m.
The directors state that they are satisfied with the performance for the year as operating profits increased by 36pc - going from €1.56m to €2.14m.
The company also benefited from a €1.277m increase in the value of the property and the €5.13m written off in monies owed to Mr McNamara.
The directors state the sale of the hotel will allow the firm to repay all debts as they fall due.
Numbers employed by the company last year increased marginally to 170 and staff costs last year totalled €4.95m.
Shorelark entered into a 20-year lease with Bernard McNamara and Jerry O'Reilly in 2001 for the lease of the hotel.
Shorelark's accumulated profits totalled €3.36m and its cash pile amounted to €1.16m.