Dalata pays €13m for Sligo Clarion in latest acquisition
Published 20/01/2016 | 02:30
Dalata Hotel Group, Ireland's largest hotel operator, has bought the Clarion Hotel in Sligo for €13.1m, €6.1m above its original guide price.
Dalata chief executive Pat McCann revealed that the company was interested in the Clarion, which sits on 5.5 acres, when it came to market in October.
The hotel, which will be rebranded as a Clayton hotel as part of a €750,000 refurbishment, was offered for sale on behalf of receiver Aiden Murphy of the accountancy firm Crowe Horwarth.
The deputy CEO at Dalata's Business Development and Finance arm, Dermot Crowley, said: "The hotel is benefiting from the recovery of both the local and national economies.
"We believe that the introduction of the Clayton brand will further enhance the offering at the hotel and we are very excited about its addition to our portfolio of Clayton hotels in Ireland."
Dalata has been managing the four-star hotel since 2013 and will continue to do so now.
The hotel, which has 162 bedrooms, was established in 2005 and is located in Sligo town.
The head of hotels and leisure at real estate firm Savills, Tom Barrett, announced the deal yesterday.
"The Clarion Hotel Sligo is one of the largest and most profitable hotels in the north-west of Ireland and represented a rare opportunity to acquire a unique landmark property.
"The sale attracted significant investor interest, resulting in competitive bidding and a strong sale price of €13m, or €80,000 per bedroom. This sale represents another strong vote of confidence for the green shoots of recovery in west of Ireland tourism."
Savills originally listed it with a guide price of €7m.
The hotel is the latest in a line of acquisitions outside of Dublin by Dalata. Last October the hotel group bought the Clarion in Cork for €35.1m.
KBC Bank and AIB put the Sligo Clarion Hotel into receivership in 2012. Ahead of entering into receivership, the hotel was transformed from the former St Columba's Hospital by Galway builder Tom Coyle for around €45m.
Mr Murphy, who is a partner at Crowe Horwarth, said he was delighted to conclude the deal.
"After a number of years of successfully trading the Clarion Hotel Sligo, I am delighted with the outcome of the sales process," Mr Murphy said.
"The Clarion has become a leading destination in the northwest for weddings and is perfectly positioned to benefit further from the improving tourism market."
Last year, the hotel generated earnings before interest tax depreciation and amortisation of €930,000.
In Dalata's half-year results, filed in September, it trebled its revenue to €97.7m, while its profits rocketed from €900,000 in the same period of the previous year, up to €2.7m.