Irish hospitality investment company iNua Hospitality has completed the purchase of the five-star Muckross Park Hotel and Spa in Killarney for a sum in excess of €6 m
illion via selling agents DTZ Sherry FitzGerald.
The purchase of Muckross Park Hotel expands iNua Hospitality’s hotel asset portfolio after the company previously purchased the Radisson BLU hotels in Cork for €9 million, and Limerick for €3.5 million in the last 18 months. iNua Hospitality has immediate plans to invest close to €250,000 in a stylish refurbishment of the hotel’s 12 apartments, with further plans to build two additional suites in the luxury hotel.
The market for profitable hotel assets has been buoyant in Ireland in recent years. Reflecting on its latest acquisition, iNua Hospitality CEO Noel Creedon said: ”Muckross Park Hotel is already a very strong brand both nationally and internationally, and is ideally located in Ireland’s busiest tourist destination outside of Dublin. Our strategy is to increase visitor numbers to the hotel and to improve its profitability. We are delighted to open a new chapter in the hotel’s history and predict a bright future that introduces and welcomes many new customers to the unforgettable Muckross experience."
The deal is a timely one for investors in iNua Hospitality's latest fund as it qualifies for the property CGT exemption introduced by the Government in December 2011. The waiver has successfully stimulated transactions in the Irish property market and closed at the end of 2014.
This latest acquisition is consistent with iNua Hospitality’s strategy in investing in well-located, four- and five-star profitable hotels and significantly strengthens its overall position in the Irish hotel market.
“Having improved operating fundamentals in both our hotels in 2014, our forecast for Q1 2015 is looking promising and we are hopeful of a continuing growth story for iNua Hospitality investors,” continues Creedon. “Booking pace is strong in both of our Radisson BLU hotels and we expect a similar story with Muckross Park Hotel. Momentum is good and economic activity is improving, which, when coupled with no new supply coming on stream, should drive further growth going forward."
The Muckross hotel is profitable; revenues have more than doubled in three years, from the €2.6 million recorded in 2011 to €5.3 million in 2014, that in addition to improved management reflects the general improvement in the hospitality sector overall.
The 129-strong management and staff at Muckross Park Hotel will remain uninterrupted by the deal and iNua Hospitality plans to build on the many plaudits and awards that the hotel has won in the past. In 2014, the hotel scooped a 'Trip Advisor Top 15 Luxury Hotels in Ireland' award, as well as World Luxury Spa Award 2014, ISIA Gold Medal for Accommodation Excellence 2014, Best Gastro Pub in Munster 2014, an AA Rosette for its Yew Tree Restaurant and was named Munster Wedding Venue in 2012 by Southern Brides.
The award-winning hotel, which has 68 bedrooms and 18 self-catering apartments, is located in the idyllic Killarney National Park and is the oldest hotel in Killarney, dating back to 1795. In 2006, the property saw significant redevelopment following a multi-million investment in the hotel and spa. Over the last three years, spearheaded by experienced General Manager Sean O’Driscoll, the hotel has established itself as one of the country’s leading five-star hotel resorts, developing a loyal following for its luxurious accommodation, food, service and friendliness.