Dalata, Ireland's largest hotel operator with a portfolio of 42 three and four star hotels, has acquired a part completed hotel property in Cork city centre for €10.2 million.
The site is located in close proximity to Beasley Street, South Mall and Parnell Street.
The hotel had previously been granted planning permission in February 2006 for a double basement, ground floor and a further four floors which were going to consist of a car park, spa/leisure centre, reception, cafe, bar and restaurant as well as 121 bedrooms.
Get a FREE Digital Subscription!Enjoy full access to Hospitality Ireland, our weekly email news digest, all website and app content, and every digital issue.
However, once the structural envelope was completed in 2007, construction ceased shortly after with the premises remaining in a shell state since. Dalata now hopes to secure permission from the Cork City Council with the plan to begin construction by the end of the year and to open the hotel in the first half of 2018. The group said it plans to invest a further €22 million in the development.
Dermot Crowley, Deputy CEO Business Development and Finance, said: "The Beasley Street site will be a very welcome addition to our Maldron portfolio of hotels. The Cork hotel market has had a very strong start to 2016 and will continue to benefit from the increased economic activity in the city."
Last October, Dalata agreed to purchase the Clarion Hotel in Cork for a record €35.1 million.
Meanwhile, The Sunday Business Post has reported that the race to purchase the landmark Gresham Hotel in O'Connell Street in Dublin is down to just four contenders, with €85 million being touted as the most likely sale price. It is reported that six bids of over €80 million were received for the property but that advisers CBRE and Christie have recommended that just the top four proceed to the next round of bidding.
It is understood that US funds Apollo and Cerberus are in the running for the hotel, along with Spanish family-owned chain Riu Hotel & Resorts and Tifco Hotel. Group.
(* Pictured is Dalata chief executive Pat McCann speaking at the 2015 National Hospitality Conference in Dublin)