Michael Smurfit funded K Club extension with shareholder loans

Recent accounts for 2015 show losses but performance is likely to have improved since

The K Club:  the luxury hotel almost doubled its bedroom stock in 2015 to 134 rooms. Photograph: Eric Luke

The K Club: the luxury hotel almost doubled its bedroom stock in 2015 to 134 rooms. Photograph: Eric Luke

 

Accounts filed this week for the K Club five-star golf resort in Co Kildare suggest that a recent extension of the hotel at the former Ryder Cup venue was funded by shareholder loans from its owner, Michael Smurfit.

The K Club, which includes two championship golf courses and a luxury hotel, almost doubled its bedroom stock in 2015 to 134 rooms through the addition of an extension. Financial statements for the resort suggest a book value of €13 million has been attributed to the extension.

The accounts for that year for the K Club’s holding company, Bishopscourt Investments, show that Mr Smurfit lent about €13 million to the resort in 2015, suggesting he funded the entire project from his own resources.

The resort owed Mr Smurfit a total of €57.2 million by the end of that year.

Loss before tax

Bishopscourt’s accounts show the K Club made a near €4 million loss before tax in 2015, up from €3.2 million the previous year. Turnover rose from €12.8 million to almost €14.2 million, while its operating loss was flat at €2.3 million.

While the financial performance in 2015 showed the property remained steeped in losses, its position is likely to have improved significantly since 2015, in line with its extended capacity. It will also have benefited since then from the booming tourist market, especially with regard to US tourists, with whom the K Club resort is popular due to its Ryder Cup association.