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145-bed hotel sale at airport is set to fly

CORK International Airport Hotel should fly at its €4.75 million asking price, given its quality, location — and trading figures.

The guide price is about 15% of what it cost to develop, so a new operator will be coming in with a very low capital cost, relative to its value and income potential.

It mightn’t be the most expensive hotel to come to the Cork market — that honour belongs to the Fleming Group’s Fota Island Resort, under very active viewing. Fota’s sellers rs are seeking €20m for a package that cost €90m to develop, but the airport offering is the largest in terms of beds for many years — the profitable Cork International Airport Hotel has 145 beds.

It’s based beside the 7,000-job Airport Business Park, where occupiers like Amazon are reportedly on the expansion trail. McNamara was a part-developer in phase 11 of the business park, and his funky hotel creation, which picks up on aviation themes in its look, is next to the car park at the €180m airport terminal.

Cork’s International Airport Hotel cost between €35 million and €40m to develop, opened in 2007 and generated significant capital allowances. It’s on 2.7 acres, with parking for 160 cars, and has an as-yet undeveloped basement.

As initially reported here yesterday, it’s now for sale via Savills in Dublin and Cork, on behalf of receivers Grant Thornton, acting for Bank of Scotland/Lloyds Banking Group who are owed €200m by developer Bernard McNamara, and whose total indebtedness has been put at a staggering €1.5 billion.

Denis O’Donoghue and Tom Barrett of Savills say the four-star airport hotel they are selling makes good business sense, and while it’s been operated by a management group Tifco since 2009, that deal can be put aside by new operators. “The hotel’s trade and profitability have grown in recent years, and there’s great potential to build the business further,” they say.

It has 10 meeting rooms, lounge, bar, restaurants, sandwich bar and bakery, and its conference and banqueting facilities can cater for up to 320. It has a long leasehold.

Details: Savills 01-6181415, 021-4271371

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