Tetrarch loses out on Tara Towers to rival hotel group Dalata
Property investment fund Tetrarch Capital was outbid for the landmark Tara Towers Hotel in Dublin, after Dalata made an offer that was "substantially more" than what Tetrarch was prepared to offer.
Pat McCann's Dalata is paying more than €13m for the South Dublin hotel and will invest another €4.5m in refurbishing it.
Tetrarch CEO Michael McElligott said his firm had made what it regarded as a strong offer - but rival hotel chain Dalata bid much more.
"That doesn't mean they overbid," he said.
"I think we both look at things a bit differently in terms of what we want to do with an asset and value them accordingly," he added.
Tetrarch said last week that it is setting up a separate team to manage and operate its hotel business, which controls the likes of Mount Juliet and the Citywest Hotel.
Tetrarch Hospitality will be headed by Damien Gaffney, the current chief investment officer of Tetrarch Capital. Glenn Valentine, who is general manager at the Citywest Hotel, will take the position of director of operations at Tetrarch Hospitality.
The company will invest about €100m in its hospitality business in the over the next two to three years. Those funds will be used for a mix of asset purchases and upgrades of existing hotels and apartments.
The firm will apply for planning permission in the new year for a 180-bed apart-hotel at Mark Street close to Trinity College in Dublin.
The apart-hotel concept is rare in Ireland but is very common on the continent. It is aimed at people staying for three nights or more in the same place. Unlike traditional hotel rooms, apart-hotels also feature a kitchen area with full cooking facilities in the room.
Sunday Indo Business