Tetrarch Capital to launch new hotel management arm
Property investment fund Tetrarch Capital is to move its hospitality business into a separate division and will invest another €100m in the sector.
The firm, which owns a host of hotels including Mount Juliet in Co Kilkenny and Citywest in Dublin, is creating a separate team to manage and operate its hotel business.
Tetrarch Hospitality will be led by Damien Gaffney, the current chief investment officer of the overall group. Glenn Valentine, who is general manager at the Citywest Hotel, will become director of operations.
About 55pc of Tetrarch's portfolio is made up of hotels and apartments. It is those properties that will be taken over by the new hospitality division. The remainder of the portfolio is made up mostly of offices.
Initially, Tetrarch Hospitality will manage Mount Juliet, Citywest Hotel, The Dawson Hotel, Killashee House Hotel, Mount Wolseley, Clonmel Park Hotel and Jacob's Inn.
Mr Gaffney said the move was "a very exciting phase in the continuing expansion and growth of Tetrarch Capital".
"We've made a number of excellent additions to our hospitality and leisure portfolio this year, and as we approach 2016 we're very positive about the opportunity to undertake further compelling acquisitions.
"I'm really looking forward to leading the team over this next phase as we look to increase the scale and breadth of our portfolio and the income we generate across all forms of accommodation assets," he added.
Tetrarch Capital chief executive Michael McElligott meanwhile was bullish on the future of the hotel market in Ireland.
"All the evidence points to continuing positive trends in the Irish hospitality, leisure and rented residential sectors, particularly for well-managed properties in locations of high demand," Mr McElligott said.
"We've experienced double digit revenue growth in all our properties this year, with robust occupancy levels throughout the year.
"The performance of our accommodation estate in 2015 gives us the confidence to make further acquisitions both inside and outside Dublin in 2016 and beyond. We believe our new operating platform will greatly assist in the growth of our portfolio and enhance the quality of our offerings across our various properties," he added.
With prices in Dublin now far ahead of the country, Mr McElligott said he expects his business to do deals in the likes of Belfast and Cork next.
"We are a little under-represented in those places," he said.
When launching Tetrarch Hospitality, the Group also said it plans to build an "aparthotel" at a site it owns on Mark Street close to Trinity College.
The aparthotel room is of similar dimensions to a normal hotel room but has cooking and cleaning facilities.
It is aimed at people staying for longer than three or four days. While it is almost unknown in Ireland, the concept is extremely popular in continental Europe.
"The Dublin aparthotel market is under-supplied and Tetrarch Capital sees very strong latent demand for this type of accommodation from domestic and international travellers, particularly from visiting families," the company said in a statement.
Tetrarch was an underbidder on the Tara Towers in Booterstown in South Dublin which Dalata bought earlier this week.