The 31-BED Clonakilty Hotel has been resold, in an off-market deal, for up to €1.8 million, to a hospitality investment group, in a deal reportedly backed by Chinese investors.
The 1990s-built hotel on Wolfe Tone Street, built under the Seaside Resort Scheme, was previously associated with the Randles family from Killarney, and last sold around 2014, for around €500,000 at the time.
It was bought in ’14 by a Munster family, in the hospitality/hotel management sector and with West Cork experience, and they substantially built up the trade and turnover figures to a very strong level in the past few years.
It’s the second hotel in West Cork to sell recently with reports of Chinese investor interest, and follows the sale of the 15,000 sq ft 21-bed Islander’s Rest on Sherkin Island to an Irish-Chinese couple, with 30-berth marina in 2108 for an unconfirmed €1.5m. The deals are entirely unrelated, and sources say the Sherkin Island hotel’s new owners plan a sailing element to complement the accommodation.
The Clonakilty Hotel sale was done just prior to Christmas, negotiated by Ray O’Neill of Sherry FitzGerald O’Neill, who was also involved with DTZ in the previous sale of the 31-bed hotel in the bustling tourist town. While declining to comment on the price, it has further physical development scope, he said.
It’s understood that the unconfirmed investor buyers are also involved in a Galway hotel, and may have plans to expand along the Wild Atlantic Way.
Meanwhile this week it was reported by the Irish Times that China’s Pu Yuan/Prime Value Capital Management were involved in the Clonakilty deal, linking them to purchases of two other Leinster hotels in €1.8m and €2.5m deals, later syndicated to Chinese investors under a Irish 2012 introduced ‘visas for investments’ programme.
A PVCM spokesperson was quoted as saying the Clonakilty Hotel “has been bought by our company as a normal transaction, and not for any individual investor.”
Details: Sherry FitzGerald O’Neill 023-8833995