The sale of the 68-bed hotel, needing capital expenditure, included eight high quality guest lodges, all on eleven acres in a spectacular coastal setting, near Derrynane, between Sneem and Waterville.
It had a guide in excess of €1.5 million, and is being sold for more than that sum, to as-yet undisclosed purchasers, via agents Tom Spillane & Co in Killarney, and CBRE in Dublin.
Also believed to have changed hands locally in the recent past is the Waterville Lake Hotel and golf course, in an unreported off-market deal, understood to be to a US ex-banker buyer, with further investment in both planned, with the golf course renamed the Hog’s Head.
Considerable interest had been expressed over the summer in the 1982-built three-star Derrynane Hotel and the eight holiday homes near Caherdaniel, including from other Kerry hotel operators, Irish hotel owners and overseas.
It’s understood the buying interest may be a mix of overseas and local, and will bring a new dimension to the property. The Derrynane Hotel was developed by hotelier Jerry O’Reilly, who sold his Aghadoe Heights Hotel to European buyers last year for €6 million. The three-storey 68-bed Derrynane Hotel didn’t open for its 2015 season, and was put for sale by Gearoid Costelloe of Grant Thornton, appointed receiver by Bank of Ireland in March of this year, with the parent company owing €3.2m to the bank.
Key attractions in the sale were the Ring of Kerry/Wild Atlantic Way coastal setting and views, the price level it was offered at in excess of €1.5m for 11 acres with eight immediately rentable holiday homes, and elements of a hotel package that include outdoor swimming pool, and scope for bar and food sale to residents and non-residents, with passing coach traffic.
The hotel’s core, featuring dated fairface block and fibre ceilings is likely to need considerable investment from the new ownership. Sale terms were agreed this month, with a Sale Agreed board put up by Tom Spillane at the weekend. Neither Mr Spillane nor CBRE’s John Ryan and Lisa Keogh would sale divulge details prior to signing of contracts, but did indicate it had sold for in excess of the guide price.
Also close by is the 300-acre National Heritage Area and forest at Derrynane House, ancestral home of Daniel O’Connell, as well as sandy beaches, with golf at Parknasilla, Templenoe and Waterville.
Details:Tom Spillane & Co 064-6633066, CBRE 01-6185500