Flood-Damaged Cork Hotel On Sale At €6M
Published on Apr 24 2013 10:50 AM in Hotel
Cork's five-star Kingsley Hotel & Leisure Centre has been offered for sale at €6 million. The five-star hotel, which was built in the 1990s, closed in 2009, following the flooding that devastated Cork City Centre in November of that year. Savill's Denis O'Donoghue and Tom Barrett are handling the sale for David Carson of Deloitte, who was the receiver appointed by Bank of Ireland.
It is expected that it will cost between €1 million and €2 million to refurbish the ground floor of the hotel and to replace electrical and mechanical fittings which were damaged as a result of the floods.
One three-bedroom penthouse and 18 two-bed serviced apartments are also being sold with the hotel, which was extensively refurbished in 2005. Although the hotel itself has been closed for more than three years, the serviced apartments have continued to generate income of around €24,000 a month, with occupancy rates resting at around 75%.
According to the Irish Times, Cork's hotels have experienced significant growth in recent years, with one study showing that the overall occupancy rate in the city was 71%, with the average room rate standing at €70 per night. In 2011, occupancy rates struggled to reach 63%, with the average room rate at 266.