Slieve Russell doubles profits ahead of likely sale to satisfy Quinn debts

Sean Quinn: founder of bankrupt Quinn Group. Photo: RTÉ

Jon Ihle

The Slieve Russell Hotel more than doubled its profits in the year to June 2022 as the easing of Covid restrictions boosted revenue at the business.

The Cavan property, once part of the Quinn business empire, has been owned by the Irish Bank Resolution Corporation (IBRC) since 2011. It is set to go on the market to settle a portion of old debts to Anglo Irish Bank incurred by Quinn Group before the crash.

It booked profits for nearly €4.4m on turnover of almost €16.5m – a big improvement on the prior year, when Covid lockdowns hit the hospitality industry hard.

The hotel is valued at €22.3m and has €6.5m in cash on the balance sheet, according to the latest accounts for Slieve Russell Hotel Ltd, the ultimate parent company.

The company owes IBRC €66m and has a net shareholders’ deficit of €41.7m, so even a sale at a premium would not come close to satisfying its debts.

IBRC’s liquidators are making a big push this year to recover funds for the State by selling off the remaining assets of the vast property portfolio previously owned by the Quinn family.

In March they agreed to sell the 128-bedroom Holiday Inn in Nottingham for about £11.9m (€13.5m). It was previously owned by Aoife Quinn, the second-youngest daughter of Seán Quinn.

In February, IBRC sold another former Quinn family property, the Barge, a well-known pub on the banks of Dublin’s Grand Canal, for €3.75m.

The liquidators also hope to place Q City office complex in Hyderabad, India on the market soon in a sale that could reportedly yield €65m. The Hilton Prague, a 791-bedroom conference hotel which could be worth up to €250m, may go on the market next year after recently being refurbished.

The Slieve Russell’s debts to the defunct Anglo Irish Bank come from loans advanced in January 2007, which were payable at the end of 2008.

The company did not meet the payment terms, as Quinn Group was already in financial difficulties due to plunging property values and bad investments by founder Sean Quinn.

Receivers were appointed by IBRC, the vehicle set up to recover value from Anglo after it was nationalised, in April 2011.

The accounts state that Slieve Russell is expected to achieve positive earnings and cash flow this year. It made a loan payment to IBRC last year of €2.5m.

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