Luxury hotel resort records €113,842 pre-tax profit in first year under Chinese ownership
The Chinese-owned firm that operates the luxury Fota Island resort in Cork recorded pre-tax profits of just over €113,000 in its first year in business here.
The Kang family bought the five-star resort for a reported €20m in 2013 and quickly followed that 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 Beijing hotelier family. New accounts filed by Xiu Lan Hotels, which operates the hotel, convention centre and spa resort, show that the business recorded pre-tax profits of €113,842 in the 12 months to the end of September last.
The hotel includes 123 bedrooms and eight private penthouse suites.
The firm commenced trading on September 26, 2013, and generated a gross profit of €7.8m to the end of September 2014.
The directors' report says the company plans to continue its present activities and current trading levels.
However, the pre-tax profit takes account of non-cash depreciation costs of €368,661.
The operating profit for last year stood at €371,447 and interest charges of €257,605 reduced the profits.
At the end of September last, the resort firm had accumulated profits of €81,223. The firm's cash pile stood at €269,628.
The accounts show €10.9m of capital expenditure with the money used to acquire tangible assets. Staff costs were €4.13m with €78,355 paid out to directors.
Fota Island Resort was developed by the Fleming Group in 2006 after John Fleming purchased the bought the original Fota golf course in 2004 from the Killeen Group.
The resort hosted the Irish Open in both 2001 and 2002 and again last year.
The hotel yesterday declined to comment on the accounts filed.