U2's Clarence back in the black after three years
The Clarence Hotel -- co-owned by U2's Bono and The Edge -- returned to profit last year after three successive years of losses.
However, accounts just filed for the hotel in Dublin's Temple Bar show it reduced its accumulated losses only after Bono and The Edge's Clarence Partnership waived a lease payment of €737,000 due from the hotel last year.
The abridged accounts lodged by the 49-room hotel show the business reduced its accumulated losses by €11,643 from €2.578m to €2.566m in the 12 months to the end of December last.
The filings do not provide a turnover figure. The hotel's manager Clinton Attwell said yesterday: "The hotel continues to perform considering the current market conditions."
Prior to last year, the business had incurred significant losses with pre-tax losses of €1.64m incurred in 2009 and a loss of €1m in 2008.
The boutique hotel was purchased by Bono, The Edge and a consortium of investors in 1992 and the returns show that the hotel's shareholders have advanced interest-free loans to the business and they were owed €1.069m at the end of December last.
The shareholders are listed as Bono and The Edge along with financier Derek Quinlan and developer Paddy McKillen.
A note attached to the accounts states "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".
The note goes on: "These parties have confirmed that they will not seek repayment of such loans for the foreseeable future.
The note adds that directors Bono and The Edge "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".
The Clarence has an annual commitment of €770,000 to lease the building from the Clarence Partnership and €737,000 of that was waived last year. A note shows that the Clarence paid €33,000 in lease payments last year to the partnership and the Clarence Partnership paid the company €33,000 in licence fees.