PRETAX PROFITS at one of Ireland’s best-known hotels, the five-star Dromoland Castle in Co Clare, last year dropped by 81 per cent to €64,403.

In accounts just filed to the Companies’ Office, its emerged that turnover at Dromoland Castle (Holdings) Ltd dropped 14 per cent to €11.8 million last year from from €13.8 million in 2008.

The filings show that the hotel’s operating profit also dropped by 66 per cent to €211,889.

The drop in turnover and profit come against the background of a declining tourist market and Dromoland general manager Mark Nolan yesterday described the figures as “a creditable performance, but obviously we would like it to be better”. Mr Nolan said that the hotel has already tackled its cost base without compromising service. He confirmed that the group currently employs 170 staff – 28 to 30 down on the figure 12 months ago.

He said: “It is the board’s intention and it feels very strongly that there should not be any pay cuts.”

Mr Nolan added: “This year is a challenging year, but the indicators for next year show that it will be a better year.”

General manager of Dromoland Castle since 1989, Mr Nolan said that the Irish custom is the backbone and lifeline to the hotel. He said: “We invest a lot in sales and marketing. We are a long time on the go and have a very good reputation.”

He added: “We don’t have huge debt, which is good and the Board is eager to reinvest.”

The figures show the company’s operating profits were hit by interest charges of €138,890.

Last year, Dromoland acquired the Castlemartyr Resort Hotel in Cork and Mr Nolan said that Castlemartyr was “doing okay”.

The directors’ report states that they see the acquisition of Castlemartyr “as an opportunity to expand the Dromoland brand and generate additional revenues”.

The company last year paid no dividend to its mainly US-based shareholders. Mr Nolan and the chief executive of Independent News & Media, Gavin O’Reilly, are also shareholders.

Mr Nolan said a €30 million expansion plan “is not off the table”.