Revenues at the five-star luxury Ashford Castle resort 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 27% to €1.32m last year.
Profits reduced despite revenues increasing by 2% from €31.45m to €32m last year which was driven by an increase in average room rates.
In an interview, General Manager at Ashford Castle, Niall Rochford said today that 2024 was "a strong year" for the business despite a difficult first four months when business was not as strong as expected.
Mr Rochford said that the hotel had to deal with higher costs in 2024 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 has previously staged the 2017 wedding of current US Masters champion golfer, Rory McIroy and Erica Stoll and Mr Rochford said that "we are working harder to generate profits".
Mr Rochford said that "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 Ashford Castle business.
He said that US visitors make up 65% of business with Irish guests accounting for 25% of business.
Online rates at the hotel for Wednesday and Thursday of next week range from €975 per room per night to €7,250 for the resort's Presidential Suite.
Asked about occupancy rates in 2025, Mr Rochford said that from June to the end of September "we have been operating at maximum capacity".
The hotel’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."
Staff numbers at Ashford last year reduced from 342 to 327 as staff costs increased from €10.7m to €11.4m.
Mr Rochford said that the firm currently accommodates 185 staff on and off the Ashford estate that includes 57 accommodated in a 14 unit house estate in Ballinrobe that Ashford Castle paid out €3.3m for in 2024.
Ashford provides a regular bus service to and from Ballinrobe housing estate which is located 12km from the resort property.
Cash funds at the firm last year reduced from €7.32m to €3.97m.
Reporting by Gordon Deegan
