Dromoland Castle returns to profit
ONE OF the country’s best known five star hotels, Dromoland Castle, returned to pre-tax profit last year.
New filings show Dromoland Castle (Holdings) Lad recorded the €51,839 pre-tax profit after sustaining a pre-tax loss of €53,569 in 2010.
Revenues increased by 3 per cent from €10.9 million to €11.3 million in the 12 months to the end of December last.
Yesterday, Dromoland managing director, Mark Nolan said: “We’re very happy to be producing a profit.”
The firm’s operating profit almost trebled last year from €64,721 to €191,367, with net interest payments of €134,979 reducing the hotel’s profits, according to Mr Nolan.
Mr Nolan said the North American market “is even stronger this year, with the average room rate back up”.
The hotel “has turned things around” after the 2010 pre-tax loss “and that is down to the great team that we have here who are very focused and who are drilling into niche markets”.
“We expect revenues to be up around 10 per cent this year and we’re very positive about making a profit. We’re very upbeat about this year,” he said
Mr Nolan – who is also a shareholder in the company – said the North American market accounts for over 50 per cent of the hotel’s business “and Shannon airport and its future is very important to us. It is key”.
The hotel had €11 million in accumulated profits and €21.7 million in shareholder funds at the end of December.
The hotel last month purchased the adjoining Clare Inn hotel for €2.1 million and Mr Nolan said: “We are seeing the benefits of purchasing the Clare Inn already.” Mr Nolan said the hotel “is doing well. We are getting our feet under the table. It is a great property.”
The accounts show employment costs last year increased by 2 per cent from €4.4 million to €4.5 million last year.
The group employs 330, with 170 employed in Dromoland and 160 at the Clare Inn.
The firm’s cost of sales increased last year from €2.93m to €2.99 million, with operating expenses increasing from €7.9 million to €8.1 million.
Its tangible assets are valued at €27.1m. The then rundown castle was purchased by US citizen Bernard McDonagh from the O’Brien clan for £66,000 in 1963 and in 1987, the hotel was sold to its present owners for just under £3 million.