Dromoland Castle returns to profit

Dromoland Castle returned to record a pre-tax profit last year.

New returns show that Dromoland Castle (Holdings) Ltd recorded the €51,839 pre-tax profit after sustaining a pre-tax loss of €53,569 in 2010.

The Co Clare hotel returned to pre-tax profit following revenues increasing by 3% from €10.9m to €11.3m in the 12 months to the end of December last.

Two former US presidents, George W Bush and Bill Clinton stayed at the hotel, while Nelson Mandela also enjoyed the hotel’s surroundings.

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.

Mr Nolan said that the return of the North American market last year “is even stronger this year with the average room rate back up”.

Mr Nolan said that 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”.

He said: “We expect revenues to be up around 10% this year and we’re very positive about making a profit. We’re very upbeat about this year.”

Mr Nolan — who is also a shareholder in the company — said that the north American market accounts for over 50% of the hotel’s business “and Shannon Airport and its future is very important to us. It is key”.

The figures show that at the end of December last, the hotel had €11m in accumulated profits and €21.7m in shareholder funds.

The hotel last month purchased the adjoining Clare Inn hotel for €2.1m and Mr Nolan said: “We are seeing the benefits of purchasing the Clare Inn already.”

Mr Nolan said that between the two hotels, 330 people are employed.

Dromoland’s profit last year takes account of non-cash depreciation costs totalling €1.1m.

The accounts show that employment costs last year rose by 2% from €4.4m to €4.5m last year.

The hotel’s cost of sales increased last year from €2.93m to €2.99m with operating expenses increasing from €7.9m to €8.1m.