Wednesday 17 January 2018

Profits up 39pc to €15m at McKillen-led luxury hotels

The luxury Claridge's Hotel in London, which is part of the Maybourne group.
The luxury Claridge's Hotel in London, which is part of the Maybourne group.

Gordon Deegan

Pre-tax profits at the luxury Maybourne London hotel group that was the source of a long running dispute between Irish developer Paddy McKillen and the billionaire Barclay brothers rose by 39pc to £10.82m (€15m) last year.

New figures lodged by Coroin Ltd with Companies House in the UK show that revenues increased by 7pc, from £142.5m to £152.5m.

Coroin oversees the luxury five-star Claridge's, the Connaught in Mayfair and Berkeley at Knightsbridge.

The dispute between Mr McKillen and the Barclay brothers ended earlier this year after the Qatari-backed Constellation Hotels Group bought the Maybourne group.

It installed Mr McKillen as the person to lead, direct and develop the assets.

A sign of Mr McKillen's growing influence in the group was the appointment of Liam Cunningham, a director of his Irish-based entertainment group, to the board of Coroin as a non-executive director in August.

At the end of last year, the group had bank loans of £547m and the group's loans were refinanced in October of this year with new lenders and are repayable in 2022.

The directors say the hotel group performed robustly last year with operating profits up by 6pc to £47m. However, interest payments of £37.42m reduced the group's profits to £10.82m. The directors' report states that the projections for 2015 forecast increased operating profit.

Irish Independent

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