One of the island’s largest function venues, the Palace Hotel and Casino on Douglas Promenade, has announced it will stop taking bookings for conferences and large events from early 2025.

The move marks a significant shift for the hotel, which has long been a key location for major corporate gatherings, social events, and exhibitions on the island.

Brett Martin, chief executive of Palace Holdings, explained the decision to the Isle of Man Examiner, citing two primary reasons behind the change.

‘We’ve taken the decision to move out of the conference and events business for two main reasons’, he said.

‘Firstly, post-pandemic demand has never returned to the levels we used to see in earlier years, and secondly, the costs involved in operating a conference and events business have skyrocketed since Covid.’

Mr Martin highlighted the financial pressures facing the hospitality sector, particularly the steep rise in operational costs.

‘Minimum wage has increased by almost 40% in less than four years and will rise another 20% in the next six months if government presses on with its living wage policy.

‘That means the Isle of Man will likely have the highest minimum wage in the world and operating a “peak and trough” business like conference and events is no longer viable against that backdrop’, he added.

The hotel, a long-standing venue for high-profile conferences and large social functions, is now shifting its focus toward its more stable hospitality offerings.

According to Mr Martin, the Palace will prioritise its food and beverage operations, such as Looky’s Lounge Bar and the Paragon Restaurant.

He said: ‘These have a much steadier stream of business and can better absorb the very high operating costs that impact local hospitality’.

The hotel's primary function room, Cushag, will no longer host large events.

Instead, it will be re-tasked for what Mr Martin describes as ‘more profitable purposes’ in 2025, with further details expected to be released next year.