Investment costs push Fota Island Resort operator deeper into the red
The Hong Kong company that operates the luxury Fota Island Resort in Cork recorded losses of €386,827 last year as it further invested in the resort.
The loss for Xiu Lan Hotels Ltd - for the 12 months to the end of last September - takes account of hefty non-cash depreciation costs of €1.08m and interest payments of €365,466.
It also follows a modest loss of €4,478 in 2017.
A spokesman for Fota Island Resort said the business last year saw steady growth in revenue across the majority of market segments at the resort.
"Management were happy to see another busy trading year with a mix of new and returning guests and growth in the Northern European market. The resort is continuing to trade well with similar visitor numbers to the previous year. The Vat increase has seen an impact on revenue growth," he said.
In 2013, the Kang family purchased the five star Fota Island Resort for a reported €20m and quickly followed that purchase by snapping up the Kingsley Hotel in Cork for €6m.
“There has been continued reinvestment in the product since the purchase," the spokesman said.
The resort just has just completed a full room refurbishment programme this year and there are plans to refurbish the wedding and ballroom facilities this winter.
