Ashford Castle, the renowned five-star luxury resort in County Mayo, has invested €3.3 million in a 14-unit housing estate in Ballinrobe to accommodate its staff. The acquisition, aimed at housing 56 employees, underscores the resort’s commitment to addressing staffing challenges in the competitive hospitality sector.
Niall Rochford, General Manager at Ashford Castle, confirmed the purchase of the estate at Military Close, Ballinrobe, but chose not to disclose the exact purchase price. However, figures from the Residential Property Price Register indicate the estate was bought for €3.3 million, averaging €235,714 per house.
Rochford highlighted that this year’s business performance has been robust, with Ashford Castle benefiting from a trend termed “coolcations.” US tourists, seeking respite from the sweltering temperatures of Mediterranean destinations, have flocked to Ireland’s cooler climate for luxurious getaways.
The investment in staff accommodation is part of Ashford Castle’s strategy to tackle the challenge of attracting and retaining employees. The resort, which completed a 45-room staff accommodation block on its estate in 2018, now provides lodging for a total of 155 staff members, including those housed in Ballinrobe. The estate is located 12 kilometers from the castle, and the resort operates a regular bus service for staff between the two locations.
Despite a 4% decline in Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) to €7.39 million in 2023, Ashford Castle reported a 16% increase in revenues, rising from €27.1 million to €31.45 million. Rochford attributed the dip in EBITDA to the absence of Employment Wage Subsidy Scheme (EWSS) payments received in 2022, which amounted to €950,222.
The resort’s accounts reveal pre-tax profits of €1.82 million after accounting for €1.2 million in interest payments and €4.35 million in non-cash depreciation costs. Staff numbers increased from 327 to 342, with staff costs rising from €9.38 million to €10.7 million. Charitable donations made by the resort totaled €105,000 last year.
Looking ahead, Rochford expressed optimism about a slight increase in revenues, noting high room occupancy rates of mid-90% from May to October. However, he acknowledged ongoing challenges in maintaining profit margins due to rising food and labor costs. Despite a sluggish start to the year, the surge in US visitors has bolstered the resort’s performance, positioning Ireland as a prime destination for luxury tourism.