Business Commercial Property

Thursday 18 September 2014

Top Cork hotel for sale with €3.75m guide price

Peter Flanagan, Commercial Property Editor

Published 20/02/2014 | 02:30

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The Charleville Park Hotel in Charleville, Co Cork.

ONE of the top hotels in north Cork has been put up for sale with an asking price of some €3.75m.

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The Charleville Park Hotel in Charleville is now on the market for sale by private treaty.

According to Savills, who are acting as agents for sale, the four-star hotel comprises 91 luxurious bedrooms, two bars, restaurant, conference and banqueting facilities, leisure centre and nightclub.

The hotel is said to have a large ballroom with capacity for 800 guests and is a popular venue for weddings. The leisure centre includes a 25-metre swimming pool and has 1,300 members.

The hotel was built by developer William Savage and opened in 2008. However, the company behind Charleville Park and two other Cork hotels fell into receivership in May 2012 amid reported debts of €30m. Kieran Wallace of KPMG was appointed as receiver over the business.

LOCATION

The hotel is situated on a 5.7- acre site fronting the N20 Cork /Limerick road. Charleville is seen as having a strong infrastructure which includes a regular train service on the Dublin -Cork line. It is within easy reach of both Cork and Shannon airports.

The town is in the heart of the Golden Vale, and not surprisingly, given its location, the area's largest employer is Kerry Group which operates a large dairy processing plant in the town. Other notable employers include engineering firm BCD and Lidl's distribution centre for the Munster region.

The Park is the only large hotel in Charleville, and as a result trade is driven by the town and large surrounding rural catchment area which also takes in towns such as Buttevant, Kilmallock and Mitchelstown. The hotel enjoys strong food and beverage business.

The hotel market in Cork city grew considerably in 2013 with average revenue per room increasing almost 10pc, while Limerick city experienced RevPAR growth of 6.5pc according to Trending.ie.

BDL Ireland has successfully managed the hotel since May 2012 when they were brought in by Mr Wallace and the hotel trade is not impacted by the sale.

The property is available free from this management agreement, if required.

According to Denis O'Donoghue of Savills: "This hotel is in excellent condition and has a good mix of leisure and corporate business. It is trading profitably and is well positioned to capitalise on the strong recovery being experienced in the hotel sector at present."

This is the latest in a string of Munster hotels to come to market. A fortnight ago the Blarney Hotel and Golf resort returned to market with an asking price of under €3m.

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