A filing last week by California-based real estate group Kennedy Wilson offers a window into the recovery of the five-star Shelbourne Hotel’s business post-Covid.
The Kennedy Wilson filing suggests that the 265-bedroom hotel, located on St Stephen’s Green in Dublin, generated income of $6.5 million (€6.2 million) for the three months ended March 31st, 2022. This compared with just $800,000 for the same period in 2021, when the country was subject to lockdown restrictions.
“The $5.7 million increase is primarily due to the lifting of Covid-19 restrictions in Ireland that led to increased operations at the Shelbourne Hotel during the three months ended March 31st,” the report stated. “Conversely, in the three months ended March 31st, 2021, the Shelbourne Hotel severely limited its operations due to Covid-19-related restrictions.”
Tourist season
The first quarter would have included the St Patrick’s Day festival, which traditionally marks the start of the tourist season here, and which was held for the first time in three years.
For comparison purposes, in the first quarter of 2020, when the pandemic emerged and the Shelbourne closed on March 15th, Kennedy Wilson’s hotel earnings were $7.2 million.
The document also noted that the Shelbourne’s expenses increased to $4.3 million for the quarter, up from $1.6 million for the first three months of 2021. This was “primarily due to increased operations of the Shelbourne Hotel during the first quarter of 2022”, Kennedy Wilson added.
Well-heeled visitors
The filing also outlined how the mortgage debt associated with the Shelbourne reduced in the period to $79.8 million from $82 million in the final quarter of 2021.
Various indicators suggest that the summer season ahead should be a good one for the Irish hospitality trade, and the Shelbourne should benefit from the return of well-heeled American visitors to our shores after two years of Covid restrictions.
Yet significant headwinds remain. Rampant inflation, rising interest rates and genuine fears of a global recession are not the ideal backdrop for a five-star hotel operation.
