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Shelbourne Hotel slashes loss to €4.5m as revenues rise from Covid lows


The Shelbourne Hotel on St Stephen's Green in Dublin

The Shelbourne Hotel on St Stephen's Green in Dublin

The Shelbourne Hotel on St Stephen's Green in Dublin

Dublin's Shelbourne Hotel almost halved its operating loss to €4.5m last year, newly-filed accounts for the business show.

While revenue rose almost 20pc to €14.6m, it was still just about a third of what it was before the Covid pandemic struck.

The hotel is owned by US property investment group Kennedy Wilson.

The company directly behind the hotel, Kw Shelbourne Ops, noted in its accounts that the impact of the pandemic had been “significant” across the globe.

But it said that Covid-related restrictions in the Irish market, on both the leisure and travel sector, had now largely eased.

Its revenue figure represents room rentals, food and beverage sales as well as other ancillary turnover. The Shelbourne has 265 rooms.

Kennedy Wilson noted in August that the Shelbourne Hotel’s performance during the summer had been strong. Its occupancy was almost 90pc in July and its average daily room rate was €460. It was also profitable in June and July. Its average daily room rate in the 12 months to the end of September this year was $383 (€383).

In third-quarter results released earlier this month, Kennedy Wilson noted that the revenue generated by the hotel in the first nine months of the year was $33.2m, and $14m in the three months to the end of September.

That compares with $9.2m in the first nine months of 2021. It predicts its net operating income for the year will be $11.9m.

The Shelbourne Hotel is one of the capital’s longest-established hotels that’s still operating. It opened in 1824.

The trophy property was bought in 2004 for €140m by a consortium that included developers Bernard McNamara and Jerry O’Reilly. The group spent about €125m refurbishing the property.

Kennedy Wilson acquired the Shelbourne Hotel from Nama in 2014 for about $152m and spent a further €36m refurbishing it.

The group has extensive residential and commercial property interests in Ireland.

In 2020, the hotel became a focus for controversy after it removed four statues of women from its entrance that had been there for 153 years. They had been mistaken by the hotel as depicting slaves. They were returned to their plinths later that year.

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Dublin’s hotel sector remains attractive to international participants in the sector. Rattan Chadha’s CitizenM hotel chain will open its first property in the capital next year and continues to search in Dublin for additional sites.

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