€2m city hotel on the market

Auctioneers are expecting strong interest in the Hotel Clybaun in Knocknacarra, which has come on the market with a price tag of €2 million.

The 92-bed hotel, which includes a leisure centre with 18 metre swimming pool (NRG Fitness’ lease is not affected), is being sold by Ulster Bank.

It has been run by Tifco, a specialist management company, since it was placed in receivership in 2011 by Ulster Bank after an umbrella company operated by former owner Chris Crehan racked up debts of almost €90 million.

Selling agent Dermot Curtin of CBRE Hotels told Tribune Property: “It’s a profitable business, there’s a lot of cash going through there, even in receivership. It’s pretty much newly-built, so nothing is going to go wrong with the building any time soon.

“It is a business made for a husband-and-wife team or a young successful General Manager who may have an investor behind him or her. It’s all about price and value.

“In recent years, no Galway city hotels have been offered to the market and the sale of the Hotel Clybaun now provides potential purchasers with quite a unique opportunity to acquire a modern, full service hotel in the city and, by doing so, establish a sizeable foothold in the much sought after and extremely lucrative, Galway hotel market.

“This profitable, three star hotel boasts 92 spacious bedrooms and suites, excellent bar, restaurant, conference, function and wedding facilities together with an extensive and popular leisure centre, spa and health club – which is operated by NRG. The facilities include an 18 metre pool, fully-equipped gym, weights room, aerobics, spinning, spa treatment rooms and an outdoor Canadian hot tub.

“According to Trending.ie – which monitors the important key performance indicators for the hotel industry nationwide – the Galway hotel market is in growth mode, with both occupancy and average room rate up on last year,” said Mr Curtin.

The hotel – originally called the Clybaun Hotel – opened in March 2002.

For further information, contact CBRE on 01 6185500.