Clarence Hotel, located in Dublin, is famous throughout Ireland. The main reason for this fame is its owners. They are Bono and Edge, members of super star band U2. It would seem that only this name is enough to make a hotel super profitable. However, in practice it turned out to be quite different. Clarence Hotel still suffers great losses, according to the Belfast Telegraph.
Located in the most famous area of Dublin - Temple Bar - Clarence Hotel over the past three years has not only did not bring profit to their owners, but also continues to increase losses. The hotel works unprofitably from 2007, when the hotel lost more than 235,000 euros. 2010 didn’t bring a long-awaited relief. As expected, the loss this year will account for 1.6 million euros.
It is worth noting that Bono and Edge are not the only owners of the hotel. Among the owners of Clarence Hotel are financier Derek Quinlan and designer Paddy McQuillan. They all seek possible ways to improve the financial performance of the hotel. So, in order to make the Clarence Hotel profitable, 21% of staff was fired.
Some time ago Clarence Hotel promised to be one of the most famous not only in Ireland but throughout Europe. To date the number of rooms is 48. Bono and Edge planned the expansion of the hotel. The total cost of the project on expanding the Clarence Hotel was estimated at 150 million euros. However, in this situation investments in unprofitable businesses look doubtful.
It is worth noting that almost the most famous hotel Ireland demonstrates such losses even with a formidable advertising support. Star guests of the hotel could have given the honor any world hotel. Among the recent stars, who preferred Clarence is Rihanna, who even arranged photo session in front of the hotel. A reputable travel publication Conde Nast Traveller according to the readers' poll included the hotel in the list of the best hotels in the world.