Dalata is preferred bidder for McNamara's Tara Towers
Published 06/12/2015 | 02:30
Dalata has been selected as the preferred bidder for the Tara Towers, a hotel with adjacent land in the heart of Dublin 4.
The 111-bedroom hotel, with a combined site area of 1.46 acres in one of the country's most desirable addresses, was put up for sale last month by receivers Duff and Phelps, with a guide price of €9m.
Dalata would not comment, but a source said the hotel group bid €12m. The Tara Towers was developed in the 1970s by the late PV Doyle and has views over Dublin Bay. It was bought by developers Bernard McNamara and Jerry O'Reilly in 2003 for €14.2m.
The hotel is located beside vast 'urban campus' Elmpark, 17 acres of offices and residential properties that is being sold by Nama to US private equity group Starwood Capital for close to €200m. Elmpark was also developed by Mr McNamara and Mr O'Reilly and the late David Courtney.
Tara Towers offers Dalata a good opportunity to capitalise on what looks to be a record-breaking year for hotel operators as the shortage of rooms in the capital intensifies. Its winning bid comes a couple of months after Dalata was outbid by developer Joe O'Reilly for another nearby hotel, the Berkeley Court Ballsbridge.
Dalata has completed major hotel acquisitions since going public in 2014, including the Clarion Hotel in Cork. It recently raised another €150m to fund new purchases. Chief executive Pat McCann said at the company's AGM in May that it was "not a company that is going to sit patiently by and watch the opportunities disappear".
Sunday Indo Business