Dalata, Ireland's biggest hotel chain, has acquired a part-completed Cork hotel for €10.2 million in cash. It will operate under the Maldron brand.

The site is bounded by Beasley Street, South Mall and Parnell Street in the centre of Cork city. Planning permission for a 121-bedroom hotel was granted in 2006 and it began construction in 2007.

Works ceased shortly after and it has remained in a shell state since then.

Planning had been granted for a building comprising a double basement, ground floor and four floors above ground, accommodating a car park, a spa/leisure centre, a reception area, bar, cafe and restaurant and bedrooms.

Dalata said it would now engage with Cork City Council to secure permission to complete the hotel.

The company expects to commence construction by the end of the year, with the four-star hotel to open in the first half of 2018. Overall investment in the project, including the site purchase, will be in excess of €22 million. It will have about 60 employees when operational.

"The Cork hotel market has had a very strong start to 2016 and will continue to benefit from the increased economic activity in the city," said Dalata executive Dermot Crowley.

This is Dalata’s second city centre hotel acquisition in Cork, having acquired the nearby Clarion Hotel.