Developer plans third largest Cork hotel at €25m cost

Planning permission has been sought for a €25m-plus, 165-bed hotel off Cork City’s South Mall, which, if granted, will make it the city’s third largest hotel.

Hotel chain Dalata, though associated company Leevlan Ltd, this week signalled its intention to increase the bedrooms tally, from 120 to 165 beds, on an existing part-developed hotel site it purchased this year from Nama for €10.2m. Over 60 jobs are anticipated by the third quarter of 2018.

Initially part-developed by the Corbett family but left in a core state post-recession, the site is located between the historic 125-bed Imperial Hotel and the 191-bed Clayton (ex-Clarion) Hotel on Lapps Quay.

It can be glimpsed behind the landmark at the former AIB at 97 South South Mall, at 93-95 South Mall, and 17-18 Parnell Place, with limestone frontage to the narrow Beasley St.

The site’s new owners, skilled hotel operators Dalata, now control more than 20% of Greater Cork’s hotel stock, including the former Clarion, now a Clayton Hotel, which is the city’s largest with 191 bedrooms, scheduled for a multi-million euro revamp in 2017.

The company also has a Clayton Hotel at Silversprings, and a Maldron brand hotel at Shandon, and is expected to brand its new South Mall hotel in 2018 as a four-star Maldron, following planning approval and completion.

It has considerably redesigned the layout prior to seeking permission to extend further at floors four and five on Beasley St, and to replace permitted basement level parking and car lift with a light well, with bedrooms and business meeting rooms below ground.

The planning application by Leevlan/Dalata also proposes demolition of 95 South Mall, part-demolition and reinstatement of 93-94 South Mall, and a 1,500 sq ft retail unit onto Parnell Place.

The company’s plans to increase the number of bedrooms “is fantastic news for the city, and comes on top of planning sought for a 146-bed hotel on South Terrace last month”, said hotel sales specialist Denis O’Donoghue of Savills.

He said Cork City is underprovided for growing accommodation demand, with a further hotel site also in the offing at Sullivans Quay, owned by BAM and near the site of the planned events centre.

The average occupancy of Cork hotels now spans 85%-90%, and rooms rates have gone up by 16% in a year to €93 per room on average, compared to an average of €103 per room in Dublin.