The Flannery family-owned hotel consortium, based in Galway, had allocated €42.49 million towards the procurement of shares, formerly held by the family members. The accounts of the company divulge that this was done to mitigate a familial discord surrounding the governance of the hotels. The Flannery’s administration, Foxfield Inns DAC, is in command of a plethora of establishments including the Imperial Hotel in Galway, the Ashling hotel in Dublin, a hostel, a restaurant, and even a direct provision centre. They are also landlords to a considerable number of properties which fetch them rental income.
A disagreement amongst the family members led the case to the Commercial Court in January 2021. It was finally settled by June 2022, with the discordant shareholders selling their stakes back to the company. The expenditure to acquire the shares was €42.49 million and was managed through retained profits and additional funds. It is noted that this financial arrangement was well within the firm’s repayment capacity and was rooted in the current valuation of the consortium’s real estate holdings.
Along with this, it was noted that Foxfield Inns DAC initiated new subsidiaries as part of their strategic plan in June 2022, moving associated fixed tangible property assets and allied trades into the new divisions. Even though €41.99 million was allocated for the share purchase, this caused the accumulated profit of the consortium to drop from €49.86 million to €8.75 million in 2021. A post-tax profit of €86,373 for that year provided a counterbalance. A unique expense of €3 million appeared from the agreement to settle the legal hurdles and dispute with particular minority shareholders.
Separate paperwork available at the Companies Office indicates that on June 24th, 2022, the company bought the shares held by Andrena Flannery and Mary Flannery. Both resigned from their board positions on the very day. Kevin and Frank Flannery continue to be board members, both consenting on the accounts on the same day. According to a note, the group’s hotels and hostels maintain impressive occupancy rates, and the food and beverages sector demonstrates a robust performance.
The statement highlighted that “the company has undergone substantial expansion in its totality, permitting the board members to execute a key company overhaul in 2022”. The financial records of the company and its recently organized subsidiaries for the years 2022 and 2023 “will display robust commercial gains and an extremely sound financial stance,” it further conveyed.
In terms of the company’s earnings, it registered revenues of €22 million prior to the Covid pandemic in 2019, whereas the earnings in 2021, which was greatly impacted by the devastation of Covid-19, demonstrated revenues of €9.09 million.