Hotels sold as prices slashed by up to 50pc
Two hotels have sold in the last few days after their asking prices were halved.
An international hotel group is paying between €8m and €9m.in cash for Chief O'Neill's hotel in Smithfield, Dublin 7. The overseas operator's interest in an Irish hotel will boost the troubled hotel property market as well as Smithfield.
Paul Collins of CB Richard Ellis says that Chief O'Neill's has 73 bedrooms and the property also comes with a café bar and restaurant, conference and banqueting facilities for up to 450 delegates, a 55m high chimney viewing tower, a vacant retail unit and some investment income.
It was developed by Terry Devey who sold it in 2006 to Lar Byrne for around €17.5m. The latter put it on the market two years later with a €21m price tag. However, as the market slowed and at least one deal fell through, he reduced his price.
In Ballinamore, Co Leitrim, McAllister's Hotel sold at auction to a local business group for €255,000 -- almost half the €500,000 AMV.
Paul Lafferty of James Cleary and Associates reports that there were four parties bidding at the auction for McAllisters and bidding started at €200,000. Located in the town centre, it has 30 bedrooms and a nightclub, but had no pub license. Its vendor was Irish Nationwide Building Society.
Meanwhile, negotiations are still continuing after the unsuccessful auction of The Middle House, in Ringaskiddy, Co Cork, a pub with 12 en suite bedrooms and en suite apartments.
Agents Cahalane Skuse had quoted an AMV of €400,000 on the property, which is located across the road from Ringaskiddy's ferryport, which generates a substantial tourist passing trade. Bidding started at €250,000 and two bidders bid it up to €270,000, at which it was withdrawn.