Dublin’s Shelbourne Hotel nearly halved its operating loss to €4.5million last year, accounts refiled for the business show.
Although sales increased by almost 20 percent to 14.6 million euros, they were still only about a third of what they were before the Covid pandemic.
The hotel is owned by US real estate investment group Kennedy Wilson.
The company just behind the hotel, Kw Shelbourne Ops, noted in its financial statements that the impact of the pandemic had been “significant” around the world.
But it said Covid-related restrictions in the Irish market have now been largely eased in both the leisure and travel sectors.
Revenue figures include room rentals, food and beverage sales, and other ancillary revenue. The Shelbourne has 265 rooms.
Kennedy Wilson noted in August that the Shelbourne Hotel’s performance had been strong over the summer. Occupancy was almost 90 percent in July and the average daily price was €460. It was also profitable in June and July. The average daily room rate over the 12 months ended September this year was $383 (€383).
In third-quarter results released earlier this month, Kennedy Wilson noted that the hotel’s revenue was $33.2 million for the first nine months of the year and $14 million for the three months ended September .
This compares to $9.2 million in the first nine months of 2021. It forecasts net operating income for the year of $11.9 million.
The Shelbourne Hotel is one of the capital’s most traditional hotels still in operation. It was opened in 1824.
The Trophy property was bought in 2004 for €140 million by a consortium that included developers Bernard McNamara and Jerry O’Reilly. The group spent about 125 million euros on the renovation of the property.
Kennedy Wilson acquired the Shelbourne Hotel from Nama in 2014 for about $152 million and spent another $40 million on the renovation.
The group has significant interests in residential and commercial property in Ireland.
In 2020, the hotel became a hotbed of controversy after removing four statues of women from its entrance that had stood there for 153 years. They had been misrepresented as slaves by the hotel. They were returned to their pedestals later that year.
Dublin’s hotel sector remains attractive to international industry players. Rattan Chadha’s CitizenM hotel chain will open its first hotel in the capital next year and continues to look for more locations in Dublin.
https://www.independent.ie/business/irish/shelbourne-hotel-slashes-loss-to-45m-as-revenues-rise-from-covid-lows-42126563.html Shelbourne Hotel cuts loss to €4.5million as revenue rises from Covid lows