Resort to boost profits 'substantially' in 2015 after 'dramatic turnaround'
The luxury, four-star Mount Wolseley Hotel, Spa and Golf Resort is set to "increase profitability substantially in 2015".
That's according to new owners Tetrarch Capital who last year saved the Co Carlow business after investing €7.5m in the resort when taking it out of examinership.
The business entered examinership in April 2014 with debts of €60m to a number of different financial institutions with around €28m owed to Bank of Ireland. The purchase of the resort, which includes a golf course designed by Christy O'Connor Jnr, by Tetrarch Capital was completed in July of last year.
New accounts just filed by Mount Wolseley Hotel, Golf & Country Club Ltd show that the firm's accumulated losses increased by €282,947 last year.
However, a Tetrarch Capital spokesman said yesterday that the firm recorded €1m in costs arising from the examinership and write-offs last year. He said: "Losses in 2014 related to fees associated with the examinership and a once-off write down of certain legacy liabilities. On an underlying basis the business made a profit in 2014, and we will increase profitability substantially in 2015."
The spokesman said that since Tetrarch Capital took ownership of the resort "there has been a dramatic turnaround in the performance of the business".
The spokesman reported that "revenue in 2014 was up 3pc, notwithstanding being in examinership for a portion of the year, and revenues are up a further 10pc so far in 2015, ahead of expectations".
He added: "Mount Wolseley's team of 130 staff are doing a great job to ensure that the property is benefiting from the wider improvement in the Irish hotel and leisure market."
The estate was purchased in 1994 by the Morrissey family, who operated the resort until the business entered examinership last year.
At the end of December last, Mount Wolseley Hotel, Golf & Country Club Ltd's accumulated losses stood at €2.2m.
Its shareholder funds stood at €1.38m. The firm's cash during the year rose from €289,042 to €447,342.
Tetrarch is one of the major players in the Irish hotel sector and its other hotels include the Marker Hotel in Dublin and the five-star Powerscourt in Co Wicklow.
The firm currently co-owns and manages assets valued in the region of €450m.