Plans for the €10m sale of a part-completed Cork City centre hotel building to the Dalata Hotel Group are well advanced, according to market sources.
The country’s largest hotel operator, with over 6,700 rooms and 38 hotels, Dalata has been negotiating the acquisition of the prime hotel site, with scope for 120 bedrooms at Parnell Place.
It also fronts Beasley Street, and has a small corner presence onto the 97, South Mall bank building. It is a block away from the Clarion Hotel along Lapps Quay, which the Dalata Group acquired late last year for €35m.
Close to City Hall, and the almost-complete One Albert Quay office block, the Parnell Place hotel site has lain unfinished for almost a decade, and has been completed to shell state, with a dramatic new limestone facade on Beasley Street.
It has retained facades at 17/18 Parnell Place, opposite the elegant former TSB bank building acquired last year by Cork City Council: although in good shell condition, it will take many millions euro more to complete and to fit out.
The building was developed on a 0.18 hectare infill site by the Corbett brothers, to a design by architects James Leahy Associates, and has two-deck basement car parking for up to 120 cars.
The site was acquired by LoneStar as part of a loan sale of Corbett brothers assets, and also involved in the current sale process (which has had some legal challenges) is receiver Grant Thornton.
Dalata declined to comment on reports of an imminent sale, and sources say investment here now by the hotel group could top €20m. It is one of several sites earmarked to meet hotel accommodation demand in Cork city centre.
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