4-star hotel on sale for €6m after 2006 refurb of €10m

The only hotel in Ballincollig, in Cork has been put up for sale as a trading entity by its receivers via Savills, with a €6m price tag.

The Oriel House was redeveloped and extended in 2006, vastly increasing the size of the original 1800s period house, Oriel Court. The investment at the time was reported to be around €10m in the revamp and upgrade, including function and leisure facilities, with a 25m swimming pool.

The four-star hotel serves a large catchment, just 10km west and upriver of Cork City along the Lee valley. Ballincollig’s population is around 18,000, and employment has soared in the past decade with major companies such as EMC and VMW. In addition, the redeveloped site of the former army barracks in the centre of the town has re-energised the satellite town’s fortunes.

Selling agents Tom Barrett and Denis O’Donoghue of Savills said the fact it’s the only hotel in Ballincollig makes it a very viable business. “Ballincollig has a larger population than Tralee, and Tralee has seven hotels,” they point out.

Trading busily, the Oriel House is one of a trio of hotels that had been run by William and Angela Savage of Cork Luxury Hotels, in receivership with Kieran Wallace, of KPMG. Last year, their smaller Ambassador Hotel in St Luke’s was sold via Savills, for over €1.5m to Brian McGettigan. The Charleville Park (also redeveloped) is expected to be offered for sale later this year.

The Oriel House in Ballincollig is the most valuable, with 78 beds, two bars, and function facilities for 480, all on 2.3 acres with parking for 250 cars.

Back in 2004 when the Oriel House redevelopment plans were first mooted, a site nearby on the 150 acre Barracks lands was offered for sale with planning for a 100-bed hotel, guiding €7m for the 5.5 acre site alone.