In 2000, Mundy was dropped by Epic while working on his second album, The Moon is a Bullethole, which was about to be recorded. Although a four-track EP of that title was released, much of the material for the cancelled album was eventually incorporated into 24 Star Hotel, Mundy's 2002 album.
24 Star Hotel was released on Camcor Records - a label Mundy himself set up, primarily funded by his royalties from the Romeo and Juliet soundtrack. Camcor Records is named for the Camcor River, a popular fishing spot, which runs through the town of Birr. The album contained the song "July", an ode to the joys of the Irish summer, which gained heavy airplay throughout the summer months, and is, for Irish audiences at least, Mundy's signature tune. Along with 'July' the album contained 'Mexico' and with both receiving extensive radio play and some huge Irish festival appearances, 24 Star Hotel has gone on to triple platinum status in Ireland and he guested with Lucinda Williams in Ireland.
In 2003 Mundy also contributed to Afro Celt Sound System's album Seed, and to Even Better than the Real Thing Vol. 1 with a cover version of the Shakira song Whenever, Wherever, only with the two words in the title switched around.
In May 2004, Mundy released his third album, 'Raining Down Arrows', recorded in Austin, Texas, entered the Irish album chart at number 1. The album has since gone platinum in Ireland. He toured the UK with songwriting legend Jimmy Webb and continued to win over Irish audiences whilst making UK appearances with Richard Hawley and gaining Irish support slots with The White Stripes and Oasis.
In 2006 Mundy recorded a live album and DVD called Live & Confusion at Vicar Street, Dublin. Containing all his best known songs like 'Gin & Tonic Sky', 'Mexico', 'July', 'To You I Bestow' , 'By Her Side' & 'Love & Confusion'. The album also contained an encore of 'Galway Girl', a Steve Earle penned song that Sharon had recorded with the author years before. The live version became a huge download hit in Ireland and eventually a studio version was released after it was popularized in a television and radio advertising campaign for Bulmer's cider. The studio version of the track reached number 1 in the Irish Singles Chart in April 2008 and stayed there for 5 weeks. It became the biggest single in Ireland two years in a rown in 2007 & 2008. Mundy also recorded an Irish-language version of the track, entitled "Cailin na Gaillimhe", for Ceol '08, an Irish-language compilation record released in 2008 to raise money for several Irish charities. Two years before, Mundy recorded an Irish-language version of his song "Mexico", entitled "Meicsiceo" for Ceol '06. Ceol '06 reached the Top 10 in the Irish album charts.
In 2008 Mundy continually guested with Sharon Shannon's Big Band alongside Damien Dempsey and Shane McGowan, turning up at The Glastonbury Festival as well touring Ireland and the UK extensively.
In 2009 Mundy recorded his fourth studio album Strawberry Blood with Irish producer Joe Chester and mixed a number of tracks with UK producer Andy Bradfield. The album features contributions from Shane McGowan and Gemma Hayes and came out worldwide on itunes with a bonus download video. He guested with The Cardigans Nina Persson's A Camp project at the Academy in Dublin and 2009 see's him tour Ireland, Australia and the UK.
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