U2-owned Clarence hit by €1.1m loss

U2 still have not found the profits they are looking for at the Clarence Hotel in Dublin – losses have more than doubled to €1.1m.

Brushfield Ltd, which trades as the Clarence Hotel, is 75% owned by U2 members Paul Hewson (Bono), Dave Evans (the Edge), Larry Mullen and Adam Clayton, with The Point owner Harry Crosbie owning the remainder.

The company’s latest filing to the Companies Registration Office shows losses for the year to the end of December 2001 came to €1.16m, an increase on the €597,186 loss the company made in 2000.

The firm has accumulated losses of €10m. The 50-bedroom hotel where rooms go for €300-plus a night and a penthouse suite costs €2,100 had a turnover of €7.8m in 2001, a small increase on €7.7m sales a year earlier.

Room sales €2,9m (€2.8m in 2000) and beverage sales €2.46 (€2.5m) are the biggest revenue generators for the company which saw a fall in revenue from nightclub admission charges to €469,783 from €572,180.

Administrative expenses at the hotel soared from €5.5m in 2000 to €6.4m in 2001. The Clarence employs 131.

The accounts also show the hotel spent €84,577 on a study of a possible expansion of the hotel. The company has bank loans of €1.8m and loans from company directors and a property loan from Anglo Irish Bank adds another €31.25m to company debts.

The country’s wealthiest entertainers, U2 with a combined fortune estimated to be close to €668m, are well able to take the losses at The Clarence.

U2 Ltd’s annual returns to the Companies Registration Office show pre-tax profits for the year ending December 31, 2001 fell 95% from €9.72m to just €434,489.

However, wages for the company’s four employees, Paul Hewson, Adam Clayton, David Evans, and Larry Mullen, went from zero to €13.3m.

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