U2-owned Clarence Hotel boosts its annual profits

The four-star boutique hotel in Dublin co-owned by Bono and The Edge last year recorded profits of over €430,000.
U2-owned Clarence Hotel boosts its annual profits

Revenues at the Clarence Hotel in Temple Bar last year were boosted by the hotel being booked out for the week U2 performed the Dublin leg of their world tour last November.

Last year represented the sixth consecutive year of profits at the hotel, with the business generating a surplus of €434,228.

A spokeswoman for the Clarence said yesterday that the hotel “is very pleased with the improved performance” in 2015.

On the factors behind the improved performance, she said: “There is an overall increase in the numbers of visitors in the Dublin market, people want quality for their money and The Clarence places a strong emphasis on quality service, which helped achieve high occupancy throughout the year.”

Regarding the hotel’s performance in 2016, she said: “We have a positive view on 2016.”

Last year’s profit was up from the €400,000 generated in 2014, as the hotel continues to benefit from the boom in the capital’s hotel industry.

The boutique hotel was purchased by Bono and The Edge and a consortium of investors in 1992 and the latest returns show that the hotel’s shareholders have advanced interest-free loans to the business and they were owed €705,278 at the end of last December.

The shareholders are listed as Bono and his wife, Ali Hewson, The Edge along with financier Derek Quinlan and developer Paddy McKillen.

According to the new accounts filed by the hotel’s Brushfield Ltd holding company, the business’s cashpile last year increased nine-fold to €455,92.

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

The latest returns show that Bono and his wife, Ali and The Edge retain 50% ownership of the firm with Mr Quinlan and Mr McKillen owning the remainder.

Numbers employed by the hotel last year increased from 36 to 37 with staff costs increasing marginally from €932,276 to €942,277.

A note attached to the accounts states that “the company continues to meet its day-to-day working capital requirements by way of loans from its directors/shareholders which are unsecured and interest free”.

“These parties have confirmed they will not seek repayment of such loans for the foreseeable future,” it said, adding the directors “have confirmed their intention to provide the financial support necessary to enable the company to discharge its liabilities as they fall due and continue its operations for the foreseeable future”.

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