The four-star Galway hotel built by Bernard McNamara last year returned to profit after years of successive losses.
Mr McNamara, through his firm Shorelark Ltd, constructed the Galway Radisson Blu hotel and figures show that the firm recorded a pre-tax profit of €190,854 in the 12 months to the end of Dec 31.
This followed the firm recording combined losses of €4.98m in the three years between 2009 and 2011.
Mr McNamara resigned as a director of Shorelark Ltd in Feb 16, 2011 and the accounts show the firm returned to profit last year after its gross profitrose 7% from €11.1m to €11.9m.
Numbers employed by the hotel last year increased from 174 to 178 and staff costs last year increased from €4.58m to €4.8m.
Rezidor Hotels, under the Radisson Blu brand, operate the hotel on Shorelark Ltd’s behalf and last year received €1m in management fees and contributions to aRezidor Hotel Group marketing fund.
Mr McNamara’s long-term business partner, hotelier and developer, Jerry O’Reilly is a shareholder and remains a director of the firm.
A note attached to the accounts states that “the hotel continues to generate operating profits before rent despite the difficult environment facing the hospitality sector. The directors are optimistic the profitability of the hotel will continue despite the poor economic conditions that continue to prevail.”
The returns show Shorelark Ltd entered into a 20-year lease with Mr McNamara and Mr O’Reilly in Mar 2001 for the lease of the property. Source: The Irish Examiner.