Tuesday 26 September 2017

Four-star hotels in Cork selling for a total of €9.4m

The Radisson Blu Hotel, one of two hotels in Cork being brought to the market by Savills.
The Radisson Blu Hotel, one of two hotels in Cork being brought to the market by Savills.
The Ambassador Hotel, Cork

Donal Buckley

The Ambassador Hotel is one of two Cork four-star hotels being brought to the market this week. It has a €1.4m guide price.

Meanwhile the second hotel, the Radisson Blu Hotel and Spa near Little Island, Co Cork, has an €8m asking price.

Both have been brought to the market by Savills.

The Ambassador was established in the late 1990s at Military Hill on the city's north side, and accommodates 70 spacious bedrooms, two bars, a restaurant and a leisure centre.

Its conference and banqueting facilities are in two function rooms and can cater for up to 220 guests.

As well as its elevated 1.5 acre site offering views over the city and harbour, its grounds have parking for 70 cars.

The majority of the property is stylish Victorian red brick with a more modern extension to the rear.

It is only a 10-minute walk from the hotel to Cork City Centre and Kent train station, from where there is an hourly service to Dublin.

Tom Barrett of Savills says the Ambassador's proximity to the city centre, affluent location, road network and facilities also support both leisure and business such as weddings and other family events.

It is being sold on behalf of receivers KPMG who were appointed in May 2012 with BDL also appointed as the hotel manager at that time. The strong hotel trade is not impacted by the sale and the property is available free from the existing management agreement, if required.

The Radisson Blu Hotel and Spa opened in June 2005 on the nine-acre grounds of the historic Ditchley House.

It accommodates 126 bedrooms, a large lobby and lounge, bar, function room for up to 500 and nine additional meeting rooms.

Ditchley House dates from the 19th century and was sympathetically incorporated into the main hotel. The leisure centre with spa, gym and 18m swimming pool has about 1,000 members. Its high-specification Retreat Spa contains nine treatment rooms. The bedrooms include 27 business class rooms and seven suites.

Managed by the international hotel company Rezidor, it has achieved strong profit growth over the last three years.

It is located 9km east of Cork City at the Little Island interchange on the N25, only 4km from the Jack Lynch Tunnel. It is adjacent to the East Gate Business Park, which is home to a number of major multinational companies, big-box retailers and car showrooms.

Occupancy levels of 70pc and average room rates of €69 were achieved by Cork hotels in 2012 – up from low points of 63pc and €66, according to Trending.ie. Such occupancy levels exceeded Cork's 69pc peak recorded in 2007.

Denis O'Donoghue of Savills believes there is scope for further price recovery as the 2007 peak was €90.

Trending.ie reports that local hotels achieved a 9pc increase in RevPAR in the first quarter of this year compared to the same period in 2012.

Savills has successfully completed the sale of five hotels in Cork and Kerry since November 2012. These include the 182-bedroom River Lee Hotel, Cork City which sold for around €24.5m; Parknasilla Resort and Spa, on 485 acres in Kerry which sold well above its €10m guide; the 145-bedroom Cork International Airport Hotel which transacted for over €5m and the 66-bedroom Sheen Falls Lodge Hotel in Kenmare which sold for €5m.

Irish Independent

Also in Business