Fota records losses as it increases investment
Resort points to steady growth in revenue
The Republic of Ireland soccer squad train at the Fota Island Resort in 2016.
The Hong Kong-owned firm that operates the Fota Island resort in Cork recorded losses last year of €386,827 as the company further invested in the facility..
The loss for the operator, Xiu Lan Hotels Ltd in the 12 months to the end of September last takes account of non-cash depreciation costs of €1.08 million and interest payments of €365,466.
A spokesman for Fota said on Wednesday that the business last year saw steady growth in revenue.
“Management were happy to see another busy trading year with a mix of new and returning guests and growth in the Northern European market.”
On the resort’s 2019 performance, the spokesman said: “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.”
In 2013, the Kang family purchased the resort for a reported €20 million and they quickly followed that purchase by snapping up the Kingsley Hotel in Cork for €6 million.
The resort employs over 300 people . The increased investment in the resort resulted in the book value of its tangible fixed assets increasing from €13.3 million to €13.6 million. Directors’ remuneration at the firm last year totalled €268,850. Shareholder funds at the firm amounted to €1.5 million.