Slieve Russell hotel revenues increase 16pc to €19m ahead of sale

That is according to new accounts for Slieve Russell Hotel Property Ltd which show that revenues at the Slieve Russell last year increased by 16pc from €16.47m to €19.05m.

The hotel was put on the market last month with a price tag of €35m and the directors say that the sales process is likely to be concluded before the end of this year.

The sale is being conducted by CBRE on behalf of the liquidators of IBRC, Kieran Wallace and Eamonn Richardson, of Interpath Advisory.

The hotel has 224 bedrooms, as well as banqueting and leisure facilities, and is situated on 300 acres of land, which includes a PGA Championship golf course, a nine-hole par three course and driving range.

With the collapse of the Sean Quinn empire, the Irish Bank Resolution Corporation (IBRC), formerly Anglo Irish Bank, assumed control of the Slieve Russell hotel when a share receiver was appointed to the hotel firm in April 2011.

The business recorded operating profits of €1.85m in the 12 months to the end of June as business volumes returned to pre-Covid levels.

However, the hotel firm was charged €1.848m in interest payments by IBRC (in special liquidation) reducing profits to a modest pre-tax figure of €9,000.

The interest payments of €1.848m are more than a three-fold increase on the interest payments of €489,000 in 2022. The firm also made loan repayments of €1.5m to the IBRC (in special liquidation) and this followed loan repayments of €2m in 2022.

On the business prospects for 2024, the directors say that the outlook is positive, and trading in 2024 is expected to be in line with 2023.

They say the company has experienced significant inflationary increases, particularly in relation to utility and payroll related costs.

“In addition, disruption to energy, food and commodities markets has negatively impacted on costs.”

The directors say the board has continued its investment in the Slieve Russell property over the course of 2023 and into 2024 in order to ensure the property is maintained to the highest possible standard.

The amount spent on capital investment since 2019 is €7.5m. The pre-tax profits of €9,000 are a fraction of the pre-tax profits of €5.02m in 2022 which was skewed by Employer Wage Subsidy Scheme payments of €3.28m.