Kilkenny Hotels facing a tough winter as ‘rebound bounce coming to an end’

Colin Ahern the General Manager of the Ormonde Hotel says that hotels in Kilkenny are facing a very challenging trading period this winter, saying: “We’re heading into a period that may be unmanageable.”

Colin’s assessment is based on the escalating and ‘unsustainable’ costs his industry is facing across all areas. In recent months his linen costs are up 35%, food is up 28% and drink is up 12%. Quite simply he says: “Everything is going through the roof.”

The major increase has been in the hotel’s energy costs. Colin explains that the Ormonde’s energy bill for August 2021 was €28,000 while the equivalent bill this year was €81,000. Based on this kind of increase Colin observes: ‘Government is going to have to step in’  to help the hospitality industry. 

Hotels cannot turn off their energy at peak times and while the Ormonde has invested in a power unit that uses gas to create electricity, it is now not enough in the face of multiplying bills. Colin also notes that accessing sustainability grants from the SEAI is ‘very difficult’ and that it can take nine to 15 months to receive grant funding. Hotels who wish to change energy suppliers must also be able to pay a deposit equivalent to two to three month’s energy bills. 

The hospitality industry is worth over €160 million to Kilkenny annually and while the city had a ‘fantastic summer’ the ‘rebound bounce is coming to an end’. Colin would like to see a comprehensive support package that includes extended debt warehousing, the retention of the 9% VAT rate, increased sustainability grants and a scheme similar to the Covid Restrictions Support Scheme to help 'get through the next six to nine months'.  

Colin says: 'We want to remain affordable' to protect the Ormonde's 140 jobs.