Doonbeg owners committed to golf resort despite increased losses last year

The US owners of Doonbeg golf club remain committed to the Greg Norman-designed links in spite of losses at the resort increasing by 11% to €6.4 million last year.

Accounts just filed by Doonbeg Golf Club Ltd with the Companies Registration Office show losses last year increased from €5.8m to €6.4m.

The losses came in spite of revenues at the exclusive club increasing by 16% from €9m to €10.4m in the 12 months to the end of December last. The loss last year takes account of an impairment charge of €1.7m on property and a non-cash depreciation charge of €1.9m.

The directors’ report states that in spite of the economic and tourism climate, Doonbeg was able to increase its paid unit nights by 16% last year with room rates increasing by 2%.

“We are very pleased with the performance of the company in 2011,” general manager Joe Russell said yesterday. “Our owners, Kiawah Partners, are as committed to the project as ever. They have always recognised that Doonbeg is a long-term project and are conscious that with the changes in the Irish economy, it is going to take a little longer than originally envisaged to become profitable. They would hope that this would happen in the next couple of years.

“Overall, there was an improvement in net operations of approximately €1.4m before real estate activity is taken into account,” he said.

“The main factor behind the overall loss includes a writedown on remaining real estate developed inventory,” he said.

The club is celebrating its 10th anniversary. Mr Russell said in August and September of this year, “we have had the single best months since we opened the Lodge in 2006. We have had a particularly strong year in wedding with 31 bookings, while the golf club continues to attract ever greater numbers of visitors.”

Accumulated losses totalled €54.4m. The firm’s shareholder funds last year totalled €11.3m arising from a €66.2m capital contribution from the firm’s US parent. Numbers employed by the golf club last year increased from 160 to 162 with staff costs last year decreased from €4.79m to €4.54m.

The figures show that emoluments for the firm’s five directors last year remained static at €215,310.