Citywest Hotel Sale Agreed
Published on Aug 11 2014 9:53 AM in Hotel
Brehon Capital has reached an agreement with the receivers to Citywest hotel to purchase it for approximately €29 million, according to The Irish Times. The hotel is the largest in Dublin, with 7...
Brehon Capital has reached an agreement with the receivers to Citywest hotel to purchase it for approximately €29 million, according to The Irish Times.
The hotel is the largest in Dublin, with 789 bedrooms, and it is believed that Brehon Capital, who also own the Marker hotel in Dublin's Grand Canal Dock and the Powerscourt hotel in Wicklow, plans to undertake a substantial upgrade of the property. The conference centre is also included in the sale.
The hotel will be sold as a going concern and the deal is scheduled to close in just under a months time. Employees jobs are not due to be affected.
Bank of Scotland (Ireland) seized the hotel in 2010 and appointed Martin Ferris as the receiver. The hotel is currently being run by Dalata but it is unclear if Dalata will continue to run it on behalf of Brehon.
However, there is a possibility that the sale could encounter a legal challenge. HSS Developments, a company linked to the family of the late Jim Mansfield who developed the hotel, is claiming rights to lands on the hotel and convention centre grounds. The company said that it was owed €27 million and that it would be prepared to seek an injunction against the sale unless an agreement was reached.
According to the paper, HSSD is also believed to have held talks with the company which owns the Hard Rock hotel and restaurant franchise about jointly purchasing the hotel.