Gresham Hotel shareholders were told today that despite the 'challenging' current conditions, the group has positioned itself to take advantage of improving markets.
Chairman Harvey Soning told the company's AGM today that it was a difficult period for the group on a number of fronts with trading being impacted by the slowdown in domestic and international markets, the continuing negative impact of the September 11 attacks in the US, and the considerable level of international uncertainty prior to and after the Iraqi war.
'This challenging market environment was not helped by increases in insurance and payroll costs,' he added.
He said the Government must ensure that the tourism industry - which has suffered in the past three years due to the foot and mouth crisis, September 11, the Iraqi war and now the outbreak of SARS - is supported. To this end, he urged an increased marketing spend and the provision of a low cost terminal at Dublin airport.
Soning said that trading in the first half of the year is marginally ahead of last year, but he stressed that the reduced visibility within the markets still persists.
The Gresham AGM also heard today that the company believes it is in its best interests to concentrate on activities on city centre properties and to cluster its properties as it plans to expand in Dublin and London.
Soning said the group has received approaches in relation to a number of its west coast hotels. He said the board had a duty to examine and explore any serious approaches, but he assured shareholders that any movement in this regard would be based on value and safeguarding the interests of the group's staff.
Gresham shares closed two cent higher at 77 in Dublin this evening.
* Jim O'Leary has joined the Gresham Hotel's Board of Directors. He is a lecturer of economics in Maynooth college and also an AIB Group board director.
