The Ashford Castle estate, based in Cong, Co Mayo, owned by the Tollman family, has resorted to buying local homes as a solution to the housing crisis and staffing shortages that continue to plague the hospitality industry. In 2017, spending over €1.5 million on employee accommodation on the estate, they currently shelter roundabout 150 employees, according to Mr Rochford. This includes spaces on the estate itself, local lettings, and residential properties recently bought in the vicinity.
They have recently acquired a property in Ballinrobe within a housing development due to the considerable difficulties they encountered in securing employee lodging or rental accommodation nearby. Mr Rochford emphasised the importance of providing their employees with a high-quality experience, both in and out of their working hours, which prompted this strategy.
Following the disclosure of the 2023 financial results for Ashford Castle Hotel Ltd and The Lodge at Ashford Castle Ltd, the firm operating the four-star Lodge hotel on the estate, Mr Rochford spoke. A sharp decline in post-tax profits from €19.3 million in 2022 to €1.9 million last year was observed at the larger, five-star Ashford Castle Hotel. This dip, according to Mr Rochford, is due to the company reversing an impairment charge of over €17 million on the value of its properties in 2022, thereby enhancing the year’s earnings.
He also noted that expenses grew approximately €2 million from €20.1 million to roughly €22.77 million in 2023 due to higher food and energy costs. However, Ashford Castle’s overall trading income saw a 16 per cent rise from €27.1 million to €31.5 million. Revenue at the Lodge also experienced a 7.4 per cent growth, amounting to €6.5 million.
Mr Rochford expressed that 2023 marked an upbeat and affirmative period for the estate, although it had its fair share of challenges. The rise in revenues, he said, could largely be attributed to robust business from North America. Additionally, the domestic market also demonstrated considerable strength during the early stages of the year. He did, however, highlight certain obstacles, including the VAT hike from September 2023 and increment in supplier prices. The expense associated with running a business on the other hand, remains on an upward trajectory. Yet, they were pleased with the results for that year.
In contrast, 2024 commenced on a relatively sluggish note. Mr Rochford, however, voiced confidence that a memorable year-end was on the cards for the estate, given the continued good performance of the US markets. While there was a noticeable dip in the market, at home and abroad, during the initial quarter, it has since bounced back considerably. Their second and third quarter, in particular, is shaping up to possibly be the most profitable they’ve ever had.