Thursday 29 September 2016

Operating profits drop 37pc to €232,845 at five-star Fota resort

Gordon Deegan

Published 08/09/2016 | 02:30

Republic of Ireland football manager Martin O’Neill with assistant manager Roy Keane during squad training in Fota Island Resort in Cork last June in advance of the Euro 2016 football tournament in France
Republic of Ireland football manager Martin O’Neill with assistant manager Roy Keane during squad training in Fota Island Resort in Cork last June in advance of the Euro 2016 football tournament in France

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

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This summer, the Fota Island Resort received a welcome increase in business with the international Irish soccer team holding a five-day camp there before jetting off to France for the Euro 2016 tournament.

The boost to business this year followed the resort increasing its gross profits by 10pc, from €7.8m to €8.6m, in the 12 months to the end September 30th last.

In 2013, the Kang family purchased the five-star Fota Island Resort for a reported €20m and they 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 Beijing hotelier family.

New accounts recently filed to the Companies Office by Xiu Lan Hotels Ltd that operates the hotel, convention centre and spa resort show that the business recorded a pre-tax loss of €53,658.

This arose from interest payments totalling €286,503.

The hotel includes 123 bedrooms and eight private penthouse suites.

The firm commenced trading on September 26, 2013, and the business has continued to increase under the new owners who are enjoying the benefits of the boost in the tourism industry here.

The directors' report states that the company plans to continue its present activities and current trading levels.

However, the pre-tax loss takes account of non-cash depreciation costs of €474,262.

At the end of September last, the resort firm had accumulated profits of €2,174. The firm's cash pile more than doubled, going from €269,628 to €609,882.

The accounts show that €406,495 was spent on capital expenditure with the money used to acquire tangible assets with €10.9m spent under that heading in the prior year.

Numbers employed last year fell from 207 to 204 and staff costs last year increased from €4.13m to €4.46m. Directors' remuneration more than doubled, rising from €78,355 to €187,136.

Fota Island Resort was developed by the Fleming Group in 2006 after John Fleming bought the original Fota golf course in 2004 from the Killeen Group, owned by the O'Mahony family, the Toyota car distributors

The Fleming Group proceeded to add two more golf courses to the original course which hosted the Irish Open in both 2001 and 2002 and again last year.

In 2006, Mr Fleming invited the then Taoiseach, Bertie Ahern, to officially open the hotel and resort.

The hotel yesterday declined to comment on the new accounts.

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