Nama fuels hotels blitz

Limerick’s Savoy Hotel, Killarney’s Malton, Kilkenny’s Ormonde Hotel and now Cork’s Metropole Hotel are set to boost the end of year hotel sales tally to about €350 million.

Last week, CBRE said the surge in hotel purchases by the end of September 2014 had seen almost €280 million garnered in a staggering 45 hotel sales, for the nine-month period.

Now, several more hotel sales, and a Savills hotel portfolio offer at an advanced stage will see the end-of year total soar far higher.

Yesterday, Nama announced it is to offer a regional hotels portfolio as part of a Q4 €600m sale of five Irish property portfolios, and expected to come to market in the coming weeks and months are the Clarion hotels in Limerick and Cork amongst others, while Limerick’s Strand Hotel is also getting immediate interest.

Incredibly, the number of 2014 hotel sales (and possibly hitting as high as 50 by year’s end to avail of the CGT exemption expiry) contrasts sharply with just two hotel sales in all of 2009, and a mere three hotel sales in 2010. The total number for 2013 however jumped to 33, and this year is likely to be the peak of volume sales, close to or even over 50.

Among the larger Munster sales to round out the year are Limerick’s five-star Savoy, bought for €18-20 million via a local, as-yet unconfirmed local Limerick developer/investor. The purchase included the high-end hotel, developed for the Marriott Group, as well as 84 apartments earning €660,000 pa, and six shop units on Henry Street netting a further €575,000 pa.

The buyer has strong income of €1.2m pa ever before hotel earnings, noted its selling agent Gordon Kearney of Rooneys, acting jointly with BNP Paribas for a receiver of Michael Daly’s Fordmount Developments.

Asked about market reports that entertainer Michael Flatley may have been among the as-yet unidentified investors in the Limerick Savoy swoop, Mr Kearney said “It’s the first I’ve heard of it. I believe the local investor may be issuing a statement on the purchase soon.” Meanwhile, Mr Kearney said he had also agreed sale terms on Punches Hotel Limerick, which he had been guiding at €1.5m million.

Meanwhile, almost on a similar scale to Savoy’s strong price, Killarney’s Malton Hotel has been bought for c €15m by local hotelier Joe Scally, owner of the five-star Hayfield Manor in Cork city, and Killarney’s Royal Hotel: Mr Scally had previously been involved in its consortium acquisition when it was sold by Government in 2006 as part of the Great Southern Hotels sell-off. The Malton, offered as part of a portfolio trio with Cork’s Metropole Hotel and Killkenny’s Ormonde, was marketed by Savills’s Tom Barrett and Denis O’Donoghue. It’s understood terms have been agreed on the 112-bed Metropole for above its €4.5m guide, and on the 118-bed Ormonde, also above its €11.5m guide.

Meanwhile, Nama has confirmed a portfolio of regional hotels will be among five Irish property portfolios with a combined value of approximately €600m to go market by end of 2014.

The sales will also comprise two office portfolios in Dublin, including prime offices at 4-5 Grand Canal Square, a retail portfolio of five regional shopping centres, a residential investment portfolio made up of 600 apartments in seven Dublin locations in Dublin.


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