Tetrarch to spend €60m on Citywest Hotel buyout
Tetrarch Capital, whose portfolio includes the Killashee and Powercourt hotels, has completed the acquisition of Citywest Hotel in Dublin from Pimco, the US investment giant.
Tetrarch and Pimco acquired the property for €30m in 2014 when the hotel was in receivership.
The latest deal sees Pimco exit the 764-room hotel and is backed by a €60m loan from Starwood, another global real estate investment company.
As well as funding the acquisition, the funds will go towards the ongoing refurbishment of the vast Citywest Hotel complex.
Starwood has also provided an additional €9m loan to finance the conversion of 80 aparthotel units into 84 residential apartments at the Westpark apartments at the site.
The six apartment blocks are adjacent to the golf course at Citywest Hotel, and the redevelopment is due for completion by October 2019.
The hotel and convention centre were developed between 1990 and 2009. Since Tetrarch Capital's involvement began in 2014, the hotel has undergone an €11m investment programme, upgrading guest rooms and common areas.
"We are delighted to have completed this transaction backed by financing from Starwood," Michael McElligott, CEO of Tetrarch Capital, said.
"The deal makes us the long-term owners of Citywest, which has always been our ambition. We remain very optimistic for the future of the hotel, convention centre and our wider holdings in the area, and will continue to invest in plans we have for the further enhancement of Citywest as Ireland's pre-eminent conference destination."
In December last year, Irish-owned Tetrarch announced that it had reached an agreement with the Royal Irish Automobile Club (RIAC) for the development of the RIAC's historic premises on Dawson Street in Dublin's city centre.
It is understood that the development cost of the project will be between €30m and €35m.
After the economic crash, Tetrarch Capital emerged as a major hotel investor.
The company co-owns and manages assets with a value in the region of €450m.
Within the portfolio of hotel and hospitality assets that the company co-owns and manages, it employs over 1,400 staff across Ireland.