Profits fall 35pc at U2's Clarence Hotel
Profits at the four-star Clarence Hotel – co-owned by U2's Bono and The Edge – fell 35pc to just €73,442.
New accounts just filed by the Clarence Hotel in Dublin's Temple Bar show that the hotel cut accumulated losses by €73,442 to €2.379m last year.
It was the third successive year that the hotel has recorded profits. The boutique hotel made losses in 2009 and 2008.
The Clarence hotel was purchased by Bono and The Edge and a consortium of investors in 1992. The shareholders advanced interest-free loans to the business and were owed €769,583 at the end of December last.
The shareholders are Bono, his wife, Ali Hewson, The Edge along with financier Derek Quinlan and developer Paddy McKillen.
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". 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".
Bono and The Edge have already invested millions in the hotel. In 2006, a loan of €8.5m from their company, Lorijudd Investments Ltd to the Clarence was written off.
Advertised online room-rates at the hotel yesterday ranged from €139 for a Standard King Room, with nightly rates for the two room River Suite going from €614.