6th May 2016 16:55
LONDON (Alliance News) - Dalata Hotel Group PLC late Friday said it has purchased a part-completed hotel in Cork City, Ireland, for a total cash consideration of EUR10.2 million, but said it will need to invest a further EUR22.0 million to complete the property.
The property is bounded by Beasley Street, South Mall and Parnell Street and is "superbly" located within the centre of Cork City. The site already has planning permission covering a 121 bedroom hotel.
That permission was secured all the way back in 2006, and construction work began only a year later. However, development work ceased shortly after the structure was secured - leaving the property a shell ever since.
The existing planning permission covers six floors, one being a double underground basement, a car park, a spa/leisure centre, a reception area, bar, cafe, restaurant and the 121 bedrooms.
"The company plans to immediately engage with Cork City Council and secure permission to complete the hotel with facilities consistent with the Maldron brand. The company expect to commence construction by the end of 2016 and the hotel should open in the first half of 2018," said Dalata.
The EUR22.0 million investment needed to get the hotel up and running will create 60 new jobs once operational.
Dalata shares closed up 3.1% to 348.0 pence per share on Friday.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
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