The Clarence Hotel in Dublin, half of which is owned by U2's Bono and The Edge, lost more than €1.6m last year as turnover slumped from €5.2m in 2008 to less than €3.4m in 2009.

The losses pushed the shareholders' deficit at Brushfield, the company that trades as the Clarence, to €2.58m. The other shareholders in the hotel are struggling private-equity player Derek Quinlan and property investor Paddy McKillen, who is challenging the transfer of his loans to Nama.

"The company continues to meet its day-to-day working capital requirements by way of loans from directors/ shareholders which are unsecured and interest free," a note to the accounts states.

"These parties have confirmed that they will not seek repayment of such loans for the foreseeable future.

"In addition, they have confirmed their intention to provide the financial support necessary to enable the company to discharge its liabilities as they fall due and to continue its operations for the foreseeable future."

The company's turnover breakdown showed room sales fell from just over €2.6m to less than €1.9m while food sales fell from €1.2m to €725,000. Beverage sales were less than €640,000 compared to more than €1.1m the previous year.

Plans to redevelop the hotel, to include a flying saucer-type podium overhead, have been shelved due to the recession.