Carton House Hotel Sees Thirty-six percent Surge in Losses Despite Revenue Growth, What This Means for Ireland’s Resort Industry

Published on September 16, 2025

Carton House, a well-established five-star resort in Co. Kildare, has faced a significant decline in profits, as it recorded a sharp 36% rise in pre-tax losses, totaling €3.47 million over the last year. Despite this, the resort experienced a healthy 8% increase in revenues, rising from €21.07 million to €22.78 million. These financial figures were revealed by Belmullet Hospitality Group Ltd, which manages the prestigious Carton House Hotel, Golf, and Spa Resort. The sprawling property, located on 1,100 acres of parkland in Maynooth, has become a well-known hub for high-end hospitality, but its recent financial results suggest the challenges faced by luxury resorts in a competitive market.

The Financial Challenges Faced by Carton House

Although Carton House saw an increase in revenue, the resort has been dealing with severe financial pressure. Renowned for hosting significant events like the Irish men’s rugby team’s training camps, and for its role in hosting the KPMG Women’s Irish Open in 2024 and 2025, the resort has found itself confronting rising operating losses. These losses saw an alarming 55% increase, going from €1.66 million in 2023 to €2.58 million in 2024. A considerable portion of this rise in losses was due to non-cash depreciation costs, which amounted to €2.2 million, along with interest charges totaling €884,833, both of which heavily contributed to the pre-tax loss of €3.47 million.

Revenue Gains from Hosting Major Events

A primary source of revenue for Carton House was its involvement in hosting the KPMG Women’s Irish Open. This event attracted a massive 40,000 spectators, contributing significantly to the resort’s revenue growth. According to KPMG, the 2024 tournament alone generated an estimated €7 million in direct spending across several sectors, including accommodation, food and beverages, event suppliers, and construction. While the extra revenue from this event helped alleviate some of the resort’s financial strain, it was still not enough to fully counterbalance the ongoing operational challenges.

Staffing Reductions and Rising Employment Costs

During the year under review, Carton House reduced its staffing levels from 308 employees to 295. Despite this reduction in staff, the resort experienced an 8% increase in staff-related costs, rising from €10.18 million to €10.97 million. Although these increased costs are a concern, the resort’s ownership has shown their commitment to sustaining operations by ensuring that working capital, interest obligations, and debt repayments are met. The financial statement highlighted that the owners are prepared to continue funding the business and support the resort’s ongoing operations despite these financial pressures.

Ongoing Investments in Carton House Resort

In addition to the operational challenges, the owners have continued to invest in the Carton House property to ensure its long-term sustainability. Over the last year, the owners allocated €1.69 million for tangible assets, following a previous investment of €2.16 million in 2023. By the close of 2024, the book value of the resort’s fixed assets amounted to €69.37 million. These investments are part of a broader strategy to enhance the resort’s competitiveness and position it for future growth in an increasingly competitive hospitality market.

Ownership Changes and the Resort’s Relaunch

In 2017, Carton House was acquired by Irish-American businessman John Mullen for approximately €57 million, marking a new phase in the resort’s history. In June 2021, it was relaunched under the management of Fairmont, which signified a fresh direction for the resort. Despite the setbacks and financial difficulties encountered since the acquisition, Carton House remains an important entity within Ireland’s hospitality sector, continuing to attract both domestic and international guests.

Challenges within the Hospitality Industry

The directors of Belmullet Hospitality Group Ltd have acknowledged that the hospitality industry is increasingly competitive and challenging. Despite these pressures, they remain confident in their ability to manage the difficulties faced by Carton House. They believe their experience in the sector will enable them to navigate the turbulent waters of today’s hospitality landscape. While Carton House continues to serve a vital role in Ireland’s tourism and retains a strong reputation, its financial struggles reflect the broader challenges that even well-established resorts face in an unpredictable market.

Financial Snapshot: Assets, Liabilities, and Financial Strain

By December, Carton House reported shareholder funds amounting to €29.92 million, with €57 million in called-up share capital. However, these assets were offset by accumulated losses of €27.07 million, which raised concerns about the resort’s overall financial health. Additionally, the resort’s cash reserves decreased, falling from €3.13 million to €2.96 million by the end of the year. These figures suggest that despite the increase in revenues from high-profile events, the resort is still facing significant liquidity issues.

At the end of the year, Carton House owed €16.76 million in bank loans and €17.38 million to group undertakings. These financial obligations underline the ongoing financial pressures faced by the resort, even as its revenues have grown due to key events and investments made in the property.

Impact on the Broader Hospitality Sector

The struggles faced by Carton House offer a glimpse into the broader issues confronting the luxury hotel and resort industry, particularly within Ireland’s tourism sector. Despite the resort’s successful hosting of prestigious events and maintaining its reputation as a high-end destination, the increase in operating costs has led to an increase in operational losses. This highlights the challenges that even the most well-known resorts face in maintaining profitability in an increasingly competitive and uncertain market.

The situation at Carton House further emphasizes the risks associated with large-scale investments in the hospitality industry. Even with significant events like the KPMG Women’s Irish Open generating additional income, the industry remains vulnerable to economic fluctuations, changing consumer behaviors, and rising operational costs. The financial struggles at Carton House highlight the need for resorts and hotels to adapt by implementing innovative strategies, addressing operational costs, and mitigating financial risks to ensure long-term viability.

The Growing Need for Adaptability and Innovation

As Carton House continues to experience financial difficulties, it underscores the increasing need for adaptability and innovation within the hospitality sector. Resorts and hotels must be proactive, continually adjusting their operations and services to meet the evolving demands of travelers and economic conditions. The luxury hospitality sector, in particular, must be agile, adopting flexible strategies to stay relevant in a highly competitive environment.

The Carton House situation provides a critical lesson for the broader industry, showing the importance of being innovative and strategic in responding to financial pressures. With the hospitality market evolving rapidly, businesses must reassess their offerings, realign their strategies, and ensure that financial risks are carefully managed. Carton House’s experiences offer valuable insights into how financial management and market innovation are crucial for maintaining long-term success.

Sustainable Long-Term Strategies: A Path Forward

While Carton House continues to grapple with financial challenges, its ongoing investment strategy and its ability to attract major events demonstrate a level of resilience. However, despite the increase in revenues, the rising operational costs, including depreciation and interest payments, have heavily impacted profitability. The future success of Carton House will largely depend on its ability to maintain its reputation as a prestigious destination, while managing financial pressures and ensuring long-term sustainability.

The ongoing challenges at Carton House underscore the complexity of managing a luxury resort in an unpredictable and competitive market. The hospitality sector as a whole must reevaluate how it approaches financial prudence, adaptability, and innovation to remain competitive and resilient in the face of changing conditions. As global tourism continues to evolve, luxury resorts like Carton House will need to rethink their strategies to maintain their position as top-tier destinations.

Lessons for the Travel and Hospitality Industry

The financial difficulties at Carton House serve as a poignant reminder of the challenges facing the luxury hospitality industry today. While the resort remains a highly regarded name in Ireland’s tourism sector, the financial instability and dependence on high-profile events underscore the vulnerabilities that even established resorts experience. For the wider travel industry, Carton House acts as a reminder that operational costs are rising, and the ability to adapt financially and innovate will be essential for businesses hoping to survive in an increasingly competitive environment.

As Carton House continues to navigate these difficult times, its experience will likely offer valuable lessons to other resorts and hotels facing similar difficulties. The key takeaway for the travel and hospitality industry is the need for financial agility and a willingness to innovate in order to thrive amid fluctuating economic conditions and a competitive market. Carton House’s struggle serves as a critical case study for the entire industry, providing guidance on how to navigate financial instability while continuing to meet the demands of modern travelers.