COURT REPORTS on the spat between Marriott International and the Irish owners of the Shelbourne hotel suggest that the grand old lady of St Stephen's Green recorded a loss of just more than €65,309 in 2007 following its €125 million makeover.

Bizarrely, Torriam Hotel Operating Company Ltd, the entity that runs the five-star hotel for Marriott, shows that it made a pre-tax profit of €463,052 in 2006 when the hotel wasn't even open for business.

In August 2006, the hotel lease agreement was terminated and replaced by a 20-year hotel management agreement. This resulted in the owners, who include property developers Bernard McNamara and Jerry O'Reilly and service station owner John Sweeney, making a "termination payment" of €749,167 to Torriam.

Administrative expenses of €232,709 left the company with an operating profit of €516,458. Interest costs of €53,406 and a tax charge of €126,003 trimmed this figure to give it an after-tax surplus for the year of €337,049.

The accounts also show that Torriam "recovered" €2.2 million from its "landlord" in respect of costs incurred in connection with the shutdown of the hotel for refurbishment purposes.

This included the payroll costs of 37 management and other staff employed by the hotel during 2006. The Shelbourne commenced "pre-opening activities" in August that year, and began hosting paying customers in February 2007.

Torriam's accounts show the hotel made a loss of just more than €1 million in 2005, the year it shut for its revamp.

At the end of 2006, Torriam had net liabilities of €868,828 and owed €1.3 million to Marriott, which was due to be paid by the end of this year. Torriam now faces a potentially lengthy and costly legal battle with the hotel's owners who have shown they're not satisfied with the hotel operator's offer of a €1.2 million payment to resolve the dispute.

On its website the Shelbourne is described as a "national treasure" - just one without riches.