Hong Kong-owned Fota suffers revamping loss
Kang family invest further in five-star Cork resort
THE Hong Kong-owned firm that operates the luxury Fota Island in Cork recorded a modest loss last year as the company further invested in the resort.
In 2013, the Kang family purchased the five-star resort for a reported €20m and quickly followed that purchase by snapping up the Kingsley Hotel in Cork for €6m.
The Fota resort had been built by Irish developer, John Fleming for over €90m and was sold on behalf of Nama to the Kang hotelier family.
New accounts just filed by Xiu Lan Hotels Ltd that operates the hotel, convention centre and spa resort, show that the business recorded the small loss of €4,478.
The loss last year followed a profit of €417,814 in 2016.
However, the loss in the 12 months to the end of September last takes account of hefty non-cash depreciation costs of €971,238.
The 2017 loss also includes interest payments of €234,864.
The hotel includes 123 bedrooms and eight private penthouse suites.
The firm commenced trading on September 26, 2013 and the owners ploughed a further €483,115 in the form of a capital contribution into the business last year.
This resulted in the company’s shareholder funds last year increasing from €1.39m to €1.86m. The company’s cash pile increased from €558,014 to €854,539.
The accounts also disclose that the company has a capital commitment of €960,000 this year in relation to the renovation of 30 bedrooms.
The investment this year followed investment in the property last year which resulted in an additional €2.4m being added to the book value of the company’s fixed assets.
Directors’ pay last year increased from €217,465 to €268,941.
Fota Island Resort was developed by the Fleming Group in 2006 after John Fleming purchased the original Fota golf course in 2004.
The Fleming Group proceeded to add two more golf courses to the original which hosted the Irish Open in both 2001 and 2002 and again last year.
Separate accounts for the firm that operates the Kingsley Hotel in Cork, the Xiu Lan Riverside Hotel Ltd, show that pretax profits last year decreased by 10pc, going from €733,256 to €659,126. The drop in profits came in spite of the company’s gross profit increasing €7.5m to €8.05m.
At the end of September last, the hotel firm had shareholder funds of €2.47m. The company’s cash pile reduced from €1.89m to €884,716.
The company’s pre-tax profits take account of noncash depreciation costs of €652,140 and interest charges of €351,534.
Numbers employed at the business last year increased from 159 to 162 with staff costs increasing from €3.46m to €3.78m. from