Shelbourne owners may never see return on €230 million inves

Shelbourne owners may never see return on €230 million investment → … 47273.html

The Shelbourne has about 230 rooms. The hotel was bought for €230m.

My maths ain’t too hot, but erm…

I would say that 1m euro a room would not actually be considered out of range for a Euopean Capitals Trophy Hotel, but they are never bought with a view to the income, more the long term capital gain, of which there will be none in Ireland for 10 years.

This was a good vanity project where the guys lost the run of themselves…

Total cost of purchase and refurbishment is 230M …1 million Euro a room

If there were servicing a loan of 230 M at 5% annually …it would need 50000 Euro profit per room per year.

This is 136 euro per night …so you need to sell the rooms at 250 Euro per night just to keep things going
with 10% occupancy ?

shoebox calculation but it looks like a lot of these project did not have anyone using their
calculator …a nice nama place.

Sweeney is in the commercial court this week , we should hear quite a bot more about the Shelbourne then. … 47243.html

The other problem complicating an examinership was detailed in the first link

And they won’t be getting any wonga off Bernard!!

WTF? how can these assets have a book value in excess of 5000% of their realisable value? Wat relevance has the book value in that instance? … 47243.html

He must be losing lots of money on the Courtyard Mariott (Headford road). I live near there … saw it go up in the boom, the big retail space beside the hotel is leased occasionally to Lidl to get rid of stock (saw mister fishy Frank Fahy there yesterday… conspiracy theory anyone). The hotel has never been busy … the offices are empty and as I said the retail space goes to Lidl now and again (oh and statoil pulled out of the service station)

from 2003 … 913432.asp

“It is believed that some of the hotels were sold to investors who wanted to take advantage of certain tax breaks. Thehotelswerethen leased back to the Sweeneys, who operate them.
With strong cashflow from his oil business and strong asset backing in a rising property market, Sweeney has not found it difficult to raise funds for further projects.
People who have met him say that he is not at all riskaverse and will happily borrow against one business to fund further expansion ambitions”.
He is involved in two projects with a combined value of more than €40 million. The first is a €25 million office, retail, hotel and commercial development under construction at the Headford Roundabout in Galway.

They pulled out of Ireland, now if you said that the service station has been closed since it went to Esso that would be different. It is relatively well located.

Yes statoil pulled out and the Esso is owned by Sweeney! My point is he cannot lease much out of that development.

Very true, he never got anywhere with the retail units on the ‘town’ side of it. Mind you they face the tattiest block of shops in Galway and look ever so incongrous there :smiley:

:smiley: It’s almost a setup for a pratfall!

Inside the empty world of Ireland’s zombie hotels … tml?via=mr

A shoebox B and B in Drumcondra would cost nearly that if not precisely that …but it can’t last, at least not much beyond the International Rugby season it can’t :slight_smile:

I had a look at the last Black Shore accounts filed.

Levered up to the hilt with little profits and capital and reserves that mainly comprise revaluation reserves.

Plethora of banks involved - AIB, Anglo, UB & BOSI. The wind up will be fun.

PG’s of course. To what extent not disclosed. … 8-Accounts

I sorta felt sorry for the guy when I read this:

In a sworn statement to the court, Mr Sweeney said he had devoted his whole life to the businesses. He said he was a non-smoker, non-drinker and a non-golfer and every resource he had had gone into the group.

He said he had borrowed personally and invested in the group and had taken a modest salary and lived a modest lifestyle.

He also said he had made costs savings over the past year and a half and that staff had taken voluntary pay cuts and were willing to take further pay cuts to ensure the businesses survive.

But then I thought, well … he probably has a gambling problem???

full story on:

Or maybe a greed problem. … 48176.html … 76883.html

All work and no play make John a dole boy :-GC