Profits at Dublin Airport hotel backed by Cairn Homes co-founder hit €2.6m


The Radisson Blu hotel at Dublin Airport
The Radisson Blu hotel at Dublin Airport
Investor: Alan McIntosh is one of the figures behind the Radisson Blu hotel at Dublin Airport

Operating profit at the Radisson Blu hotel at Dublin Airport soared 30pc to €2.6m last year as the hotel cut its overheads. Revenue at the property edged just 1pc higher to €14m.

The hotel is controlled by investors including hotelier Patrick Coyle and Scottish accountant Alan McIntosh, who is a co-founder and director of stock market-listed firm Cairn Homes. He stepped down from his executive role at Cairn Homes this week.

Mr McIntosh and another shareholder in the airport hotel, Ronan McArdle, both increased their stake in the company behind it, CG Hotels, during 2017.

Accounts for the hotel, which has almost 230 bedrooms, also show that the value of the property was increased during the last financial year by €6.1m to €41.1m, part-reversing a previous impairment.

The hotel notched up a €4.7m loss for 2017 as it shouldered €13.5m in interest and similar charges.

But that €13.5m figure included just €537,000 in interest, and a €13m loan valuation adjustment. CG Hotels restructured its external loan facilities in 2012.



Investor: Alan McIntosh is one of the figures behind the Radisson Blu hotel at Dublin AirportInvestor: Alan McIntosh is one of the figures behind the Radisson Blu hotel at Dublin Airport

Investor: Alan McIntosh is one of the figures behind the Radisson Blu hotel at Dublin Airport

The company has third-party loans totalling €43.4m, and subordinated loans totalling almost €3.6m. All the third-party loans fall due after more than five years.

The external loans are split between two facilities. The fair value of one of those was adjusted upwards last year under accounting rules by €13m to reflect improving market sentiment, according to CG Hotels’ directors.

CG Hotels has recently completed a €1.1m refurbishment of 46 bedrooms and its restaurant at the hotel. CG Hotels acquired the existing four-star facility when it was sold off by DAA’s predecessor, Aer Rianta, in 2006.

The company now has permission for significant developments at the site.

In 2017, it was granted planning permission to build a seven-storey, standalone hotel with 144 bedrooms in the car park of the existing property. CG Hotels previously secured planning permission for a €59m extension to the existing hotel.

Irish Independent

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