Friday 28 October 2016

Plans lodged for 10 storey extension to Radisson Blu

Gordon Deegan

Published 09/06/2016 | 02:30

Apartments adjacent to Tallaght Hospital and The Square, which were bought by Canadian property giant IRES Reit.
Apartments adjacent to Tallaght Hospital and The Square, which were bought by Canadian property giant IRES Reit.

The owner of the four-star Radisson Blu hotel at Golden Lane in Dublin city is to add a 10 storey extension that includes 103 additional bedrooms.

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The hotel located off South Great George's Street - owned by the Galway based developers, the Rhatigan Group - has been posting strong profits in recent years and is now looking to capitalise on its booming business.

The development is to involve an eight storey over two storey basement extension that will bring the total number of hotel rooms at the hotel to 255.

The major extension will allow the hotel generate tens of millions of euro each year in additional accommodation revenues.

The ambitious plan is to also include a spa and wellness treatment centre in the basement and a gym and juice bar at ground level.

The planning application has just been lodged with Dublin City Council and also includes modifications to the existing hotel relating to the extension of its function room.

The total additional gross floor area of the hotel extension is 5,819 sq metres.

The application is being made by the firm that owns the hotel, Luxor Investments Ltd

The most recent accounts for the operating firm at the hotel, Luxor Leisure Ltd show that pre-tax profits increased more than six fold to €775,946 in the 12 months to the end of August 2014.

This followed the firm's gross profit increasing by 6pc from €8.67m to €9.18m.

The move by the Rhatigan group to increase the bed capacity of the hotel by 40pc represents quite a turnaround for the Rhatigan Group in its hotel venture there after last year it successfully fought off in the High Court moves by Goldman Sachs to place the hotel into receivership.

The dispute over an €80m debt and the ownership of the Radisson Blu was settled last year.

The decision by Luxor Investments to lodge the planning application for its Radisson Blu hotel coincides with the City Council currently dealing with a flurry of hotel applications as investors seek to address the shortfall in what is a booming market currently in the capital.

In a recent report, the Irish Tourist Industry Confederation reported that there is a need for 30 additional hotels providing 5,000 additional rooms in the capital by 2020/21.

This follows only three large hotels been opened in the last decade with around 500 rooms provided at the Gibson (252), the Marker (187) and the Dean (52).

A decision is due on the application later this year.

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