Dromoland Castle in the red, but posts underlying profit of €3.4m
The firm that operates Dromoland Castle posted an underlying profit of €3.4m last year, but the four-star hotel recorded a pre-tax loss.
According to new accounts for Dromoland Castle Holdings Ltd, the business had a 4% increase in revenues to €22.59m.
Guests at the hotel can expect to pay a high-season room rate of up to €600 a night, with Hollywood star John Travolta staying at the Co Clare venue recently.
General manager Mark Nolan said: “2018 was a good year, with revenues up. We have been focusing on growing our average room rate, and we are on target to achieve that growth.”
But he there has been a small fall-off in occupancy.
Costs of €3.1m in 2018 were linked to a €20m refurbishment at the castle venue, interest costs of €392,137, and non-cash depreciation costs of €2.1m contributed to a pre-tax loss at the firm of €2.17m.
Chief financial officer Joe Hughes said: “We are satisfied with the underlying profit of €3.4m and we have plans to drive it further from here.”
Mr Hughes said that Dromoland Castle’s average room rate has increased by €100 between 2015 to 2018 and average room rates in the luxury hotel sector have increased by €47 in that period.
The revenues also include the business of the nearby Inn at Dromoland Hotel. Mr Nolan said that the percentage of US guests at Dromoland Castle will be just shy of 70% by year end “and that climbs to the high 80s at this time of year”.
The firm paid dividends of €378,816 during the year.
