Castle Group Inc., the Honolulu-based parent company of Castle Resorts & Hotels, reported it swung to a loss in 2007 as it incurred costs to open a unit in Thailand and become an actively traded stock again.

The company reported it ended the year with a $1.12 million loss as compared to a $372,000 profit the prior year.

Castle Group said its increased costs during the year included those to open a subsidiary in Thailand, where it is making a push to gain management contracts. The company so far has signed up two contracts in Thailand for resorts at Phuket Island and Koh Samui and has set a goal of having 15 resort properties in Thailand, Vietnam and Southeast Asia by the end of next year.

"While our top-line revenues continue to grow handsomely, our bottom line reflects our commitment and investment into Thailand and other destinations," said Rick Wall, Castle Group chairman and chief executive officer in a statement.

Castle reported 2007 revenue increased 8 percent to $21 million, while expenses rose 19 percent to $21.97 million.

The costs included legal and consulting expenses involved with its bringing Securities and Exchange Commission filings current so its stock could be actively traded on the Over The Counter Bulletin Board market. The company also recognized an expense of $954,000 to adjust the value of a receivable owed to it by Hanalei Bay International Investors.