Fota Island Resort profit falls in 2015

Operating profits at the Chinese-owned firm that operates the luxury Fota Island Resort in Cork fell last year by 37% to €232,845.

The resort had, however, increased gross profits by 10% from €7.8m to €8.6m in the 12 months to the end of September last year.

The Fota Island Resort this summer received a welcome increase in business with the Irish soccer team holding a five-day camp there before they jetted off to France for the Euro championship.

The Kang family purchased the five-star Fota Island resort for a reported €20m three years ago and subsequently snapped up the Kingsley Hotel in Cork, for €6m.

The Fota Resort had been built by Irish developer John Fleming for over €90m. It was sold on behalf of Nama to the Beijing-based hotelier family.

New accounts recently filed to the Companies Office by Xiu Lan Hotels Ltd which operates the hotel, a convention centre and spa resort, show the business recorded a pre-tax loss of €53,658. The loss arose after the firm paid out interest payments totalling €286,503.

The hotel includes 123 bedrooms and eight private penthouse suites.

The resort has continued to grow under the new owners, who are tapping the huge rise in the number of tourists to the country.

The directors’ report says that the company plans to continue its present activities and current trading levels. At the end of September last year, the resort firm had accumulated profits of €2,174.

Its cash pile had more than doubled from €269,628 to €609,882. The accounts show that €406,495 was spent on capital expenditure, with the money used to acquire assets. Some €10.9m was spent on tangible assets in the previous year.

Numbers employed last year fell from 207 to 204. Staff costs increased from €4.13m to €4.46m, while pay to directors more than doubled from €78,355 to €187,136.

Fota Island Resort was developed by the Fleming Group in 2006 after Mr Fleming purchased the original Fota golf course in 2004 from the Killeen Group, owned by the O’Mahony family, the Toyota car distributors.

The Fleming Group went on to add two more golf courses to the original course, which hosted the Irish Open in 2001 and 2002 and in 2015. In 2006, Mr Fleming invited the then taoiseach Bertie Ahern to officially open the hotel.

Up-market international chain Sheraton was the operator of the original hotel. When Nama took over the Fleming Group loans in 2010, PriceWaterhouse Cooper was appointed as receiver.

The hotel yesterday declined to comment on the accounts filed.


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