Ashford Castle expects large reduction in its revenues this year

The impact of Covid-19 on the hospitality is "now biting" on the five-star Ashford Castle hotel, its general manager Niall Rochford has confirmed.

“We are seeing the starkness of the next six months as being very difficult,” Mr Rochford said, adding that the hotel would endure “a significant reduction in revenues” for this year.

The hotel was closed for 100 days during the lockdown of the economy from mid March. In response to Covid 19 health regulations, the number of rooms on offer has reduced from 83 to 60.

Mr Rochford said that during July and August, the hotel had more than over 90 per cent occupancy thanks to domestic tourists. “We had anticipated a lower level of occupancy during the summer but the domestic Irish market was very, very good to Ashford Castle and we are very grateful for that.”

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Room rates advertised on the hotel’s website for October 9th range from 625 to 4,250. “We maintained a strong rate during the summer within the domestic market,” Mr Rochford said.

Ashford Castle has not reduced its staff numbers and Mr Rochford said the Government wage subsidy scheme “was exceptionally important to avail of that during the closure, the re-opening and now even more so during the next six months which are going to be very difficult”.

Deep crisis

In a typical year, 80 per cent of Ashford Castle’s business is international (mostly American) but Mr Rochford stated with the recent restrictions in Dublin, 40 per cent of its domestic business “is now closed to us”.

He stated that uncertainty around county lockdowns was not helpful, noting that Ashford Castle is actually located in Co Galway.

“The industry is in deep crisis and requires a crisis response from Government,” he said. “The entire industry is braced for a number of difficult, difficult months ahead. We have been very responsible in closure and we have been very responsible in re-opening and we have done all the right things.

“We have played our part and the Government now needs to play its part in delivering sector-specific supports to our industry.”

Latest accounts for Ashford Castle Hotel Ltd show that revenues increased by 0.5 per cent to 23 million last year. It recorded pre-tax losses of 2.79 million after taking into account non-cash depreciation costs of 6.5 million and finance costs of 1.08 million.

Numbers employed increased from 274 to 295 with staff costs rising from 7.8 million to 8.35 million.