TIFCO paid €45.7m for Travelodge chain
The Goldman Sachs-backed TIFCO hotel group paid €45.7m for the purchase of the 12-hotel Travelodge business in Ireland.
That is according to accounts for TIFCO's holding company Halstonville Ltd, which also confirm that the group also paid €13.3m for the Parliament hotel and the adjacent Fashion House building in Temple Bar in Dublin in July 2016.
The group has since secured planning permission for a 77-bedroom extension to the hotel. The €45.7m paid for the Travelodge business on December 1 2016 doubled the money Richard O'Sullivan and Seamus McGowan paid for Travelodge's Irish business in 2004 in a €22.5m deal.
The two shared a €15m dividend from the business in 2011 and Mr McGowan stepped down as director in April 2014 and was replaced by Stan Cooney. Halstonville subsequently acquired the freehold of the Galway Travelodge property on December 16, 2016 for €4.3m. The note states that had the Travelodge purchase occurred on January 1, 2016, the Travelodge business would have contributed revenues of €20.1m and pre-tax profits of €5.7m.
TIFCO has 25 hotel properties with over 2,520 hotel rooms in total. The group's pre-tax profits increased marginally to €2.8m in 2016 as revenues increased by 38pc, going from €32.8m to €45.26m.
Numbers employed by the group increased from 395 to 583. The profit takes account of non-cash depreciation costs of €3.29m and interest payments of €2.8m. The group also booked a €27.47m gain on the revaluation of assets for the year.
The book value of the group's assets in 2016 increased from €94.3m to €183m through a mix of acquisitions and revaluations.