Preferred bidder selected for purchase of Hotel Clybaun

A preferred bidder has been selected for the purchase of the Hotel Clybaun in Knocknacarra.

Selling agents expect the sale to be completed within the next few weeks, but are remaining tight-lipped on the price until the process is completed.

Receivers put the 92-bed hotel on the market in June with a price “in excess of €2 million”. Selling agent Dermot Curtin of CBRE Hotels told the Galway City Tribune that the property attracted strong interest locally, nationally and from overseas.

“We had a lot of interest, it’s a fine hotel and the first one in the city to be offered to the market since 2006/7. We have selected a preferred bidder,” he said.

The hotel – which includes a leisure centre with 18 metre swimming pool (the NRG Fitness’ lease is not affected) – is being sold on the instructions of Ulster Bank.

The property has been operated by Tifco, a specialist hotel management company, since it was placed in receivership in 2011 by the bank after an umbrella company operated by former owner Chris Crehan racked up debts of almost €90 million.

The three-star property has been operating profitably, and according to performance indicators, the hotel market in Galway is growing, with both occupancy and room rates up on 2013.