Ballynahinch Castle hotel, a property situated in Galway County and owned by Denis O’Brien, registered a loss of €288,432 in the previous year, increasing its total losses as of December 2023 to €5.7 million, according to recent financial statements. This last year’s deficit tripled the total of €78,300 lost by the hotel in 2022. Although turnover marginally increased by 1% reaching nearly €8.5 million, the hotel reported an operating profit of €440,434, reflecting a decrease of 23% compared to the prior year. This swing into the negative was prompted by sizable interest charges and finance expense amortisation cumulatively amounting to €727,427.
Yelsea Ltd, the firm which manages the four-star establishment located close to Recess in Galway County, indicates in the accounts’ going concern note that Mr O’Brien pledged to extend financial backing to the company and would not demand repayment of a shareholder loan for at least 12 months following the financial statements’ endorsement.
Endorsed on 26th August 2024, these accounts identified that Mr O’Brien’s loan totalled €15.4 million at the year’s termination, accruing an annual interest rate of 3%. The enterprise also had an outstanding bank loan surpassing €4 million secured against assets.
Existing as a completely-owned subordinate of the Cyprus-registered firm, DNA Event Design Ltd, Yelsea is controlled by Mr O’Brien.
With the total number of the hotel’s employees reducing from 101 to 97, payroll expenditures slightly increased from barely less than €3.2 million in 2022 to slightly over €3.3 million in the previous year. A consultancy fee of €50,000 was levied under director’s remuneration.
Being a part of the Relais & Chateaux group, the establishment is situated on a sprawling 700-acre grounds inclusive of forests, riverside walks and a salmon fishery, set against the backdrop of the magnificent 12 Bens Mountain range. The hotel offers 48 luxurious bedrooms and suites.
Efforts to reach the company for a statement remained unsuccessful.