Mount Errigal Hotel reports significant losses in 2009

The Mount Errigal Hotel in Letterkenny racked up losses of €3.7m in 2009, according to accounts filed with the Companies Registration Office.
The 140-room, three-star hotel saw turnover fall just under a quarter between 2008 and 2009, but a squeeze on margins saw operating profits plunge almost 80% from €215,000 to €48,000. However, the losses were incurred as a result of a €3.6m writedown in the value of property investments between 2008 and 2009, though the hotel continued to trade profitably.
Accounts filed for the company showed the valuations for fixed assets, including investments, dropped from €16.9m to €12.8m.
Uncertainty over the Mount Errigal hotel’s access to bank loans and the impact of the current economic situation “casts significant doubt upon the company’s ability to continue as a going concern”, the company said in a note filed with the accounts.
Despite the uncertainty, the directors said in a statement to the Irish Independent that they have a reasonable expectation that the company has the resources to continue to operate for the foreseeable future.
The directors were unavailable to comment on the details of the accounts.