Dalata, which owns the Clayton and Maldron brands, lodged its application with Cork City Council for a hotel bounding Beasley St, South Mall, and Parnell St. It bought the loans from Lone Star for €10.2m earlier this year.
Dalata has indicated it will inject €22m into its redevelopment. A hotel was started in 2007 and planning permission granted, including for a double underground basement car park, spa, and leisure centre, reception area, bar, cafe, restaurant and 121 bedrooms, but the project fell by the wayside soon after.
Dermot Crowley, deputy chief executive of business development and finance at Dalata, told the Irish Examiner its plans for South Mall included additional bedrooms and a revamp of the ground floor. He said: “It is a prime location with nearby major developments at Albert Quay and the Cork convention centre under way.”
Mr Crowley said Dalata anticipated its new Maldron Hotel in Belfast to be completed by mid-2018.
“We are very excited about Belfast. It will mean a Clayton and Maldron close to each other in a very important market.”
Dalata said that revenue per available room in its largest market of Dublin increased by almost 17% for the 11 months to the end of November compared with 2015. The group said that Brexit had no impact on its hotels in Ireland or Britain, where it operates a number of hotels.
Mr Crowley said: “We do very well with the domestic, European, and US markets so Brexit hasn’t made a difference.”
The Clayton hotel brand increased in size in Ireland from 1,588 rooms to 2,904 rooms with the rebranding to Clayton of the three former Clarion hotels, including Cork City, and the former Doubletree by Hilton hotel, otherwise known as the Burlington, in November and December 2016.
In the UK, Dalata said that construction was under way at the new 226-room Maldron Hotel Newcastle, due to open in the summer of 2018.
The company said: “We continue to actively look for further opportunities to open new hotels in the UK under the capital light leasing model.”
Shares in the €825m company remained relatively unchanged yesterday at €4.50, but they are down almost 18% this year. The company listed on the Irish and London Stock Exchanges in June, having upgraded from secondary markets.