New owners record €725k profit at Ashford Castle

The firm operating the five-star Ashford Castle hotel resort recorded pre-tax profits of €724,983 in its first year of operation.

The hotel emerged from receivership in May 2013 after Red Carnation Hotels paid €20m for the Co Mayo resort.

The deal secured the 160 jobs at the resort.

The new accounts show Ashford Castle Hotel Ltd recorded the pre-tax profits after achieving revenues of €6.4m between May 10 and December 31, 2013.

The hotel was closed for refurbishment in the early part of last year.

The profit in 2013 takes account of non-cash depreciation costs of €121,231. The firm’s cash at the end of 2013 stood at €2.1m

Numbers employed at the hotel at the end of December 2013 totalled 163, with staff costs totalling €2.4m.

The firm paid rent during the year to connected firm Ashford Castle Travelcorp Ltd of €627,500.

The €20m paid for the property by Red Carnation Hotels represented a knock-down price of the €50m developer Gerry Barrett paid for the property, that includes 365 acres overlooking Lough Corrib, from a group of Irish-American investors in 2008.

Luke Charleton and David Hughes of EY were appointed as receivers and managers to the property in December 2011.

The receivership of the hotel and resort proved a boon to professionals, with over €785,000 paid out in fees over an 18-month period, though no further breakdown is provided.

The property recorded profits of around €1.5m in its full year of receivership in 2012.

The castle was founded almost 800 years ago and was extended over the years by a range of owners, including the Guinness family. It has been trading as a hotel since 1939.