The Clarence Hotel, a Dublin hotel co-owned by U2's Bono and The Edge, finally made a profit in 2010, after three consecutive years of losses, reports the Irish Examiner.
However, the boutique hotel reduced its accumulated losses only after Bono and The Edge's Clarence Partnership waived a lease payment of €737,000 due from the hotel last year, accounts show.
The hotel reduced its accumulated losses by €11,643 from €2.578 million to €2.566m in the 12 months to the end of December last, according to abridged accounts lodged by the hotel.
Prior to last year, the hotel had incurred significant losses, with pre-tax losses of €1.64m in 2009 and a loss of €1m in 2008.
Returns show that shareholders have advanced interest free loans to the business and were owed €1.069m at the end of December last.
The shareholders are listed as Bono, The Edge, financier Derek Quinlan and developer Paddy McKillen.
A note attached to the accounts states that "the company continues to meet its day-to-day working capital requirements by way of loans from its directors/ shareholders which are unsecured and interest free."
"These parties have confirmed that they will not seek repayment of such loans for the foreseeable future."
Bono and The Edge "have confirmed their intention to provide the financial support necessary to enable the company to discharge its liabilities" and that Bono and The Edge "consider it appropriate to prepare the financial statements on a going concern basis."