Prominent city hotel sells for €3 million

The three-star Hotel Clybaun in Knocknacarra has been sold for a figure understood to be “well in excess of €3 million”.

The 92-bed hotel on the western side of the city was purchased by low-key investor Tom O’Gorman, who is originally from Co Down, with backing from property asset management specialists Capital Assets.

The new owners will now embark on a €1m refurbishment of the entire property, and it is understood that all 35 jobs are secure.

The sale includes the leisure centre with 18 metre swimming pool (though NRG Fitness’ lease is not affected).

Mr O’Gorman said: “Now that the deal is complete, we will immediately embark on a major redevelopment of the property that will transform this hotel as a flagship destination hotel ready to serve the local community in the busy suburb of Knocknacarra and also the wider Galway market.

“I am delighted to be working with the Capital Assets team and we are looking to deploying further investment capital into the leisure sector.

“We are targeting the transformation of under-performing mid-range hotels in good locations into high-performance hotels with profitable trading profiles,” said Mr O’Gorman.

Selling agent Dermot Curtin of CBRE Hotels said there were more than 70 enquiries on the sale, which led to a “very competitive” bidding process.

The preferred bidder was selected last October, and the sale concluded last week.

The hotel was put on the market last June by receivers acting on behalf of Ulster Bank after an umbrella company operated by former owner Chris Crehan racked up debts of almost €90 million.

Mr O’Gorman is one of the richest men in Northern Ireland and made most of his fortune from his investments in oil and mineral exploration – famously turning a stg£1 investment into a holding worth almost €9m.