Irish investment group Tetrarch Capital is set to take full ownership of the Citywest Hotel in Saggart, Co Dublin, by buying out the interest of its joint-venture partner, California-based Pimco.
Citywest was acquired out of receivership by Tetrarch and Pimco in September 2014 for about €30 million. Tetrarch and Pimco have since invested about €12 million in upgrading the four-star property.
The financial details of the transaction have not been disclosed but Pimco is believed to have held a majority share in the hotel.
Citywest is Ireland's biggest hotel with more than 764 bedrooms, an 18-hole golf course and a convention centre. It was originally developed by the late businessman Jim Mansfield.
It was sold to Tetrarch and Pimco by receiver Martin Ferris, on behalf of Bank of Scotland (Ireland), which had seized the property in 2010.
The transaction is subject to approval of the Consumer and Competition Protection Commission, with the deal expected to close by the end of this year.
The proposed change of control will have no impact on the day-to-day operations of the hotel, which will continue to be run by Tetrarch Hospitality.
Revenues at Citywest rose by 11 per cent in 2016 to €25.3 million, while its occupancy rate increased from 53 to 57 per cent. The hotel’s average room rate rose from €71 in 2015 to just over €78 last year.
Management at Tetrarch Hospitality has forecast a 10 per cent rise in revenues for 2017 on the back of further improvements in its occupancy levels and room rates.
Tetrarch, which has assets under management of more than €600 million, is planning further upgrades to the property’s common areas and bedrooms, and its convention centre.
In a comment to The Irish Times, Tetrarch chief executive Michael McElligott said he was "delighted" to have agreed a deal with Pimco.
“We have a very strong conviction in the medium- to long-term growth potential of the business across all key departments,” he said. “Since we bought the business with Pimco in 2014 our joint venture has made very significant investments across all areas of the property.
“In tandem with the physical improvements throughout the property, the management team and staff at Citywest have worked tirelessly to enhance customer service and the guest experience for all of our visitors.
“As a consequence we have enjoyed sustained year-on-year improvements in the levels of business at the hotel over the past three years and we are optimistic that this trend will continue in 2018 and 2019.”
