Profits reduced despite revenues increasing by 2pc
US visitors make up 65pc of business at Ashford Castle. Photo: Getty
Revenues at the five-star luxury Ashford Castle resort in Co Mayo last year increased to €32m on the back of ‘ultra high net worth’ guests booking the likes of the hotel’s Presidential Suite that can cost up to €7,250 per night.
New accounts filed by Ashford Castle Hotel Ltd show that higher food and labour costs contributed to pre-tax profits reducing by 27pc to €1.32m last year.
Profits reduced despite revenues increasing by 2pc from €31.45m to €32m last year which was driven by an increase in average room rates.
In an interview, general manager Niall Rochford said 2024 was “a strong year” for Ashford Castle despite a difficult first four months when business was not as strong as expected.
Mr Rochford said the hotel had to deal with higher costs last year and pointed to the hotel firm’s local authority rates bill almost tripling from €167,554 to €451,619.
The resort’s insurance bill also increased from €319,671 to €355,082.
The Red Carnation-owned Ashford Castle staged the 2017 wedding of US Masters champion Rory McIlroy and Erica Stoll, and Mr Rochford said ‘ultra high net worth’ guests “who see Ireland as a destination of choice for luxury and ultra-luxury holidays” remain an important part of the business.
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Mr Rochford said “we are working harder to generate profits” and noted US visitors make up 65pc of business with Irish guests accounting for 25pc of business.
Asked about occupancy rates in 2025, Mr Rochford said that from June to the end of September “we have been operating at maximum capacity”.
Ashford Castle’s Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) last year decreased by €804,546 to €6.58m.
The company last year enjoyed operating profits of €2.98m and finance costs of €1.65m reduced profits to a pre-tax profit of €1.32m
Mr Rochford said that he expects revenues to increase in 2025 compared to last year.
On the contentious Vat cut for hospitality to be introduced next year by Government, Mr Rochford said: “It is appropriate as it is extremely difficult to make any level of profit in food-led businesses right now.”
The staff numbers at Ashford Castle last year reduced from 342 to 327 while staff costs increased from €10.7m to €11.4m.
Cash funds at the firm last year reduced from €7.32m to €3.97m.
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