Holiday cottages in tourism hot spot have extra benefit of hotel facilities

A TAX-driven holiday homes scheme is set to be marketed at the back of the former Killarney Ryan Hotel — also currently being re-developed following its sale last year.

The hotel, on seven acres, made close to €15 million with agents Lisney, and two different developers are forging ahead with their respective ends of development on the land.

Choice Hotels are to operate the remodelled hotel to trade under their Quality Hotel banner, and also being provided are 63 hotel suites and 24 terraced holiday cottages.

However, the two schemes will have a common meeting ground, such as the new swimming pool and leisure complex and other facilities to help create an integrated facility for guests and for those renting the holiday homes.

That’s according to accountant Bernard Hennessy of Ophelia Developments, partnering developer and building contractor Barry Supple on the hotel suite and holiday home end of the package.

The two men have already collaborated on projects such as the Barley Cove beach villas and hotel redevelopment in West Cork, where further up-grades are also planned. However, a plan to similarly redevelop the Cliff Hotel in Ardmore with 14 holiday cottages and 256 hotel suites has recently been turned down by An Bord Pleanala. In Killarney, the Supple/Hennessy company Ophelia is commencing marketing the 24 holiday cottages, which come with tax relief against all Irish rental income.

Design is by Killarney architects O’Sullivan Campbell, and rental demand for the 1,324 sq ft three bed cottages is anticipated to be good: “while there are plenty of hotels and B&Bs in Killarney, there’s not a lot of this type of self-catering accommodation with facilities on site, and the location is fantastic, within a few minutes walk of the town,” says Mr Hennessy. Prices are quite strong, at €417,560 excluding VAT (which can be reclaimed) but tax savings on existing rental income of up to €345,600 can be affected over the 10 year period.