The victim's family settled their action against Harvey's Point Hotel, Lough Eske, Co Donegal.
The hotel was recently included in TripAdvisor's top 20 hotels in the world.
The court was told the boy made a full recovery.
He had been at Harvey's Point Hotel with his parents in 2008 when he suffered food poisoning.
"The boy is now six but was 18 months old when this happened in 2008," said counsel for the child Gareth Kinsella.
"It was a 24-hour virus and the boy has no recollection of the incident now."