The four-star Clarence hotel located in Dublin’s Temple Bar experienced a significant boost in pretax profits last year, rising from €457,083 to an impressive €1.43 million, according to accounts recently filed by the hotel operator, Brushfield Ltd. This escalation, more than three times the previous earnings, came in line with a rise in revenues from €2.8 million to €4.85 million during the twelve-month period up until May of the previous year.
In a noteworthy shift, the Dean Hotel Group, which includes the popular Clarence Hotel, was sold to British property company Lifestyle Hospitality Capital (LHC) and New York-based Elliott Investment Management earlier in March this year. The latter is a major investment firm founded by billionaire Paul Singer. This deal put a valuation of around €355 million on the hotels, granting LHC and Elliott over 70 percent stake in the establishments.
This significant purchase took place only months after renowned musicians Bono and The Edge, along with Paddy McKillen Snr, sold the Clarence hotel to the Dean Hotel Group in October of last year, ending their over 30-year stint of ownership.
Despite the change in management, the hotel continues to carry its legacy with reference to its association with U2 on their official website. The accounts highlight last year’s profit, accounting for combined non-cash depreciation and amortisation costs of €303,201. The company experienced a downward shift in Covid-19 grant support from €515,597 in the preceding year to zero in 2023. Last year’s earnings also accounted for rent expenses valued at €770,080.
A total of 47 individuals were employed last year, with staff expenses accounting for €1.09 million. The new proprietors have begun to capitalize on the ongoing high demand for hotel accommodations in the capital city. Recent planning documents submitted to An Bord Pleanála suggest that they are preparing a redevelopment plan for the Clarence and Dollard House, with discussions having initiated with the Council. Prior to this, in December 2019, Brushfield successfully obtained planning permission for an extension to add 56 bedrooms to the Clarence hotel.
Nonetheless, the authorisation for the planning grant was given a scant three months prior to the outbreak of the Covid-19 pandemic, which resulted in the closure of the hospitality sector for a substantial part of the next two years. According to the documentation, crafting the new planning application “will necessitate several months”.