More than €6 million paid in Munster hotel sales

Munster hotel sales are early out of the traps for 2016, with more than €6 million paid in all for three well-known entities.

New owners are now getting behind the reins at the Commons Inn in Cork city, just bought by expanding hotel operators Great National Asset Management for well over €2 million.

Also sold was the Derrynane Hotel in Kerry, bought by Chinese investors with Irish hotel partners for over €1.8 million, and the Cashel Palace in Tipperary, now confirmed as purchased by Coolmore Stud’s John Magnier, as indicated in these pages last October when the historic building went sale-agreed.

Very strong interest was shown in the three-star Commons Inn Hotel, on eight acres in Cork city by the Mallow/Limerick Road, especially given its scope for further site development.

It has been bought by Great National (GN) Asset Management, which is headed by entrepreneurial hotel expert David Byrne whose 2011-founded group now has 20 Irish and UK hotels in its ownership or management.

The group bought Limerick’s South Court Hotel last September.

GN is due to for rebrand and launch later this year as boutique hotel brand, Great Nite Inn, which also has sites in development in the UK, along with a number of franchises agreed pre-launch.

The fast-growing Irish-owned hotel group made four acquisitions in 2015, and owns the Breaffy Lodge and resort in Mayo, the Creggan Court in Athlone, and South Court, Limerick, with confirmation of a further four-star Irish hotel purchase expected shortly.

The Commons Express Inn, which started as a pub and was extended twice in the 1990s and 2000s to a 40-bed hotel and function facility, had been managed recently by GN for receivers Michael Cotter and Brian Barrett, EY, and sold via joint agents Denis O’Donoghue, Savills, and Rob Coughlan, Cohalan Downing.

Neighbouring occupiers include North Point Business Park, Blackpool business park and shopping centre, and nearby employers include Heineken, the Revenue Commissioners, Landmark Media, and Apple’s expanding European HQ at Hollyhill.

“It attracted interest on a national scale from both hoteliers and developers interested in the substantial site, and the level of interest saw bidding surpass the €2m guide price, reflecting the weight of demand for hotel assets with the potential to capitalise on strong economic growth, rapidly increasing commercial activity and record overseas visitor numbers,” said Savills’ Mr O’Donoghue.

Also confirmed as sold for receivers Grant Thornton, meanwhile, by agents CBRE is the 68-bed Derrynane Hotel with eight holiday homes on the Ring of Kerry, jointly with Killarney agent Tom Spillane

Derrynane is set to get a considerable upgrade from its Chinese/Irish consortium buyers before reopening, said John Ryan of CBRE, who declined to confirm reports it made over €1.8 million.

Sold too by CBRE, jointly with agent PJ Broderick for owners Patrick and Susan Murphy was the Regency-era Cashel Palace Hotel by the famed Rock of Cashel.

It has long had associations with the bloodstock industry, a previous owner was Vincent O’Brien and it now has been purchased for a reported €2.25m by Coolmore’s John Magnier, who also bought an adjoining pub and beer garden, M Ryan’s, by the town centre hotel.

Mr Magnier is expected to further develop the Cashel Palace, which dates to 1730, and which he bought on 25 acres.

Finally, new to the hotel market this week in Meath’s 148-bed Pillo Hotel, at Ashbourne.

Built in 2007, it’s close to North M2 roundabout, Dublin Airport and Tayto Park.

It has banquet and function facilities for 350, and a leisure club with 1,000 members, and is being sold for receivers KPMG.

Agents Savills seek offers around €8 million, and note the Pillo Hotel can be purchased free of a management agreement.