The directors of the five-star Castlemartyr hotel believe that the hotel will become profitable in the coming years after sustaining losses of €642,275 in its first six months in operation under new ownership.
That is according to new accounts filed by Castlemartyr Country Hotel Resort Ltd, where the directors state that the loss "is in line with expectations and due to start-up costs, which are inherent with start-up hotel business of this size".
The firm commenced operations in September 2015 and the accounts cover the period up to the end of March 2016.
In September 2015, the Co Cork resort was acquired for €14m by British businessman and hotelier Martin Shaw, who also owns a significant golf resort called Old Thorns Manor House in Hampshire, near London.
The sale at Castlemartyr included a five-star, 103-bed luxury hotel centred around a historic manor house and 13th Norman castle ruin, lake, a golf course designed by Ron Kirby, 19 contemporary courtyard lodges and nine gate lodges.
Developed by the Supple family, Castlemartyr opened in 2008. Guests have included former US president Bill Clinton, singer Bruce Springsteen, and celebrity couple Kanye West and Kim Kardashian, who stayed there on the Irish leg of their honeymoon.
The hotel also includes a 10 treatment room spa and a fitness studio.
The new accounts show that the business recorded a gross profit of €2.82m in the period between September 9 2015 to March 31, 2016.
The directors state they plan to cut costs where available to place the company in a good position. They plan a number of changes in the areas of marketing, advertising and refurbishment in order to increase sales and help the company to operate profitably.
The directors believe that "the company can become profitable over the coming years".
The loss last year takes account of non-cash depreciation costs of €158,176.
Numbers employed at the hotel total 198 made up of 167 hotel staff, 19 in management and 12 in administration.
Staff costs last year totalled €1.72m. At the end of last year, the company's cash stood at €734,111.
At the end of March last, the firm owed €13.76m and a note attached to the accounts states a parent firm, Castlemartyr Top Hotel (Holdings) Ltd will not seek repayment within 12 months.