Witchery (1988)

The dvd said Witchery, but the title in the movie said Witchcraft.  So who knows what title you'll find this under.  Apparently it's also available as Evil Encounters, Ghosthouse 2, or La Casa 4.  Usually the more titles a movie is sold under, the worse you are for seeing it. So be warned.

Gary (David Hasselhoff) is a photographer and his girlfriend Linda is a virgin obsessed with the study of witchcraft.  They are staying on an island in an abandoned hotel while Gary photographs it and Linda translates an old German text on witchcraft.

Things are going swell until a real estate agent shows up with a family who is thinking of purchasing the property.  Gary and Linda unsuccessfully try to hide because they do not have permission to be there.

As Mom and Dad talk to the agent, pregnant daughter Jane (Linda Blair) and son Tommy head upstairs and see a creepy old lady.  The lady in black (why are they always either in white or black?) is the spirit of an old movie actress who used to live there.  The spirit kills the captain who brought them over and his boat disappears from the dock, stranding them on the island.

When the supernatural starts getting more violent and the killing starts, the group tries to figure out how to get off the island.  Leslie starts talking as if she's on quaaludes, Jane ends up with crazy Robert Smith hair, and a kids tape recorder plays into denouement where history repeats itself in an endless cycle of ridiculousness.