Saturday 24 March 2018

NAMA cuts support for 11 hotels

John Malone bought the Trinity Capital Hotel in Dublin for €35m in July
John Malone bought the Trinity Capital Hotel in Dublin for €35m in July

Peter Flanagan Commercial Property Editor

NAMA has shut down or refused to support 11 hotels it took over in 2010, in a sign that the bad bank is taking a harder than previously believed line with hoteliers.

Speaking at a hotel property conference in Dublin, NAMA's head of hotels and leisure, Patrick Ryan, said his agency wanted to support jobs and investment, but couldn't protect hotels that would never be profitable.

NAMA has taken on 134 hotels in Ireland as part of the initial transfer of loans from the banks in 2010.

Of those, Mr Ryan said the agency had closed 11, with about 1,000 rooms.

The bad bank has shifted 10 hotels that it had taken on, bringing in some €160m. Most of those sales have been top-grade Dublin and Cork assets, Mr Ryan added, including the Trinity Capital Hotel in Dublin, which was bought by American billionaire John Malone for €35m in July.

Meanwhile, NAMA was also behind the sale of the Fota Island resort in Cork to a group of Chinese investors for a little more than €20m.

Mr Ryan said his agency would be looking to bring more hotels to market next year, but warned much of the stock that would be sold in 2014 was likely to come from Dublin and Cork. The Limerick market in particular was still "challenged", he said.

Mr Ryan was speaking at a hotel property conference in Dublin -- the first such conference since the crash.

Among the other speakers was CBRE's head of hotels brokerage for the UK and Ireland, Paul Collins, who said there was already €140m worth of deals in the pipeline for next year.

Irish Independent

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