Dublin-based hotel management company PREM Group has a number of properties in its sights, having raised €30m in funding to continue its expansion across Europe.
The group yesterday announced the funding package with Proventus Capital Partners, which it intends to have committed within six months.
The country’s major towns and cities are expected to be the focus of its expansion here although the Dublin market is not of interest given the lack of value on offer, said company chief executive Jim Murphy.
“Our target hotels would be city or town centre hotels in the like of Galway, Cork, Kilkenny, Wexford, the major urban areas,” Mr Murphy said.
In particular, we like four-star hotels with conference, banquet and leisure facilities; hotels with good potential in good town locations.
“We are looking across all our markets including Ireland, where there is still some good value to be had, especially… outside Dublin.
"The success of Trinity Hospitality Services also points to an increasing demand across Europe for bespoke back office services that deliver value and competitiveness for independent hotels.
“We intend to grow our business in this sector further through expansion and acquisition of like-minded companies.
"The service apartment sector is also important to us; we have a pipeline of leasehold apartments opening in the UK, Belgium and the Netherlands.”
The group is in talks, in some cases exclusively, over the acquisition of properties across the country.
It is hoped three properties can be acquired within 12 months with a further one in the UK.
With value in the capital largely eroded, a relatively short window remains for the rest of the country’s urban areas, according Mr Murphy.
“The money that we’ve raised will be used to acquire assets in Ireland, England and Northern Europe,” he said.
“In the Irish market we’re targeting minimum of three good hotel acquisitions to complement the two acquisitions that we made in the last 18 months.
"We plan to have this funding spent or committed by the year end.
“We see a window of maybe another 12 to 18 months outside of Dublin. I think the value in Dublin is probably gone or certainly outside of our league.”
Having acquired a property on Leeson St that the group managed for 15 or so years previously, Mr Murphy said that the company would explore the possibility of completing similar deals.
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