U2 hotel profits despite ‘difficult’ year

Profits at the four-star Clarence Hotel, co-owned by U2’s Bono and The Edge, rose more than ninefold last year to €113,787.

According to accounts just filed by the Clarence hotel in Dublin’s Temple Bar, the business reduced its accumulated losses by €113,787 from €2.566m to €2.452m in the 12 months to the end of Dec 31.

The profit last year of €113,787 compares with a modest profit of €11,643 in 2010.

Prior to last year and 2010, the business had incurred significant losses with combined pre-tax losses of €2.64m in 2009 and 2008.

General manager Michael O’Connor said: “It was a challenging year, but we were happy with our room rate for 2011.”

On the hotel’s fortunes in 2012, Mr O’Connor said: “The start of 2012 was very difficult, but we are happy with our performance for the year to date.”

The hotel is owned by Bono, The Edge, and a consortium of investors in 1992 and the returns show the hotel’s shareholders have advanced unsecured and interest-free loans to the business and they were owed €1.069m at Dec 31. The hotel also benefited from Bono and The Edge’s Clarence Partnership giving the hotel “a material waiver in the annual rent charge in respect of 2011”.