Losses at K Club hit €3.7m as golf resort remains unsold
Michael Smurfit-owned complex valued at €65.1m, as sales fall by 7% to just over €17.5m
Rory McIlroy in action at the K Club in Straffan, Co Kildare, in May 2016. Photograph: Andrew Redington/Getty Images
Sales last year slipped and losses widened at the K Club, the five-star golf resort in Co Kildare owned by Michael Smurfit.
Accounts for 2018 filed in the last week for Bishopscourt Investments, the company that runs the complex, show that sales at the K Club fell by almost 7 per cent to just over €17.5 million.
The performance will be seen as further evidence that the Irish hotel market has passed its peak after a near seven-year expansion.
The K Club made a loss for the year of €3.7 million, up from a loss of €3.2 million the previous year. The shareholders’ deficit on Bishopscourt’s balance sheet now stands at €16.7 million.
The K Club has been for sale since last year, initially seeking offers of about €80 million. The Irish Times recently revealed that low-profile Dublin nursing homes operators and hotelier Michael Fetherston is in advanced talks about a potential deal to buy the complex for below its asking price.
A note to the Bishopscourt accounts, which were signed off only last week, said that the directors had valued the complex during the year at €65.1 million. The accounts also said that there is currently no agreement in place with any buyer.
The K Club’s debts stand at €81 million, the accounts state, although about €56 million of that is owed to Mr Smurfit. His shareholder loans have accrued interest of €10.8 million, the accounts suggest.
Bishopscourt, which used to be a 50-50 venture between Mr Smurfit and property developer Gerry Gannon, bought the K Club for €97 million in 2005. Mr Smurfit bought out Mr Gannon’s interest in the resort in 2011.