Maldron hotel in Oranmore with €13m price tag is sold
A hotel in Oranmore, Co Galway, that is operated by Dalata under its Maldron brand, has been sold for an estimated €13m to a private investor.
Located just outside Galway city, the property has 113 bedrooms, as well as a leisure centre, meeting rooms, a bar and restaurant.
The sale was handled by Savills. The property, which opened in 1998, was put on the market last September with a €13m price tag.
Tom Barrett, director of hotels and leisure at Savills Ireland, said the transaction “highlights the continued confidence” in the Irish hospitality market, particularly for well-established and well-located assets.
Dalata, which is the country’s largest hotel group, will continue to operate the property. It has been let to a unit of Dalata for €900,000 a year, with almost 11 years remaining on the lease.
Savills Ireland said last year that at the asking price of more than €13m, the hotel would represent a net initial yield of 6.3pc. There are upward-only rent reviews attached to the property and the latest rent review was in January this year.
“Galway hotels trade with consistently high occupancy and strong revenue,” said Mr Barrett at the time the hotel was put on the market. “Year round, the city attracts high-spending domestic and international tourists. The Maldron Oranmore, represents a rare opportunity to acquire one of Europe’s strongest hotel covenants.”