Citywest Hotel achieve revenues of €16.2 million

CITYWEST Hotel achieved revenues of €16.2m in 2021, mainly from its deal to license the hotel to the HSE for covid testing.

Currently, the hotel is being used to accommodate refugees after its owners, Tetrarch Capital, signed a two-year deal from June 1 with Government, to house and process refugees at Citywest.

The 765-bedroom hotel is the largest hotel in the country but has been only used as a hotel for paying guests briefly since the pandemic hit in 2020, when Tetrarch signed an initial €21m deal with the HSE in early 2020.

A contract extension was agreed between the two parties to continue using the hotel as a covid isolation centre.

New accounts show Tetrarch Capital’s Alva Glen Investments Ltd, and subsidiaries last year recorded pre-tax losses of €3.73m. This followed a pre-tax profit in 2020 of €244,496.

However, the 2021 loss at the Citywest operator takes account of combined non-cash depreciation and amortisation costs of €4.3m.

The business recorded an operating loss of €798,801, and interest payments of €2.938m resulted in the pre-tax loss of €3.73m. The directors state that they consider the loss for 2021 “to be satisfactory.”

Hotels across the country were closed for the first five months of 2021 due to lockdowns and the directors state that the hotel was licensed to the HSE for the entire year.

Citywest re-opened as a hotel for a short time in 2022 before entering the deal with the Minister for Children to accommodate Ukrainian refugees.

Revenues last year were made up of hotel operations €15.85m, land-dealing of €275,000 and rental income of €90,000.

The 2021 revenues of €16.2m are 43 per cent down on the 2020 revenues of €28.22m when the more lucrative HSE covid deal was in place. Employee numbers at the group fell from 170 to 99 as staff costs halved from €6.28m to €3.11m.

Asset management fees of €416,151 and operator fees of €405,813 were recharged from Tetrarch Capital Ltd.