The profitable Waterford Castle Hotel on the privately owned The Island in Waterford Estuary is to be offered for sale on the international market after being put into receivership by Nama. The sale will include an 18-hole golf course on the 310-acre island as well as a clubhouse and 48 garden lodges.
Marcus Magnier of Colliers International is to seek in excess of €4.5 million for a unique property that ran into trading difficulties following the property crash in 2008. It was owned by a business consortium, which ran up debts of almost €34 million with AIB before a provisional liquidator was appointed 15 months ago.
Since then business has picked up considerably and, according to one insider, the resort showed a “strong operating profit” in the past year on a turnover estimated at €3.5 million to €4 million. The improved business was due in part to the better than usual weather in the summer months, when the three-bedroom golf lodges attracted weekly rates of up to €800.
The sale will include all fixtures, fittings and equipment, with the exception of the island ferry, which will be sold separately for €700,000. The ferry operates a round- the-clock service and carries up to a dozen cars as well as passengers on the three-minute crossing.
New owners might look at the feasibility of providing a bridge across the estuary now that much cheaper construction procedures have been devised.
Nineteen bedrooms
The centrepiece of the island is the wisteria and ivy clad four-star Waterford Castle Hotel. It has a stunning 16th-century oak panelling and Portland stone interior, which gives a clue of the style and elegance of the 19 bedrooms, five of them suites with private sitting rooms.
A total of 48 mainly three-bedroom lodges used by the hotel as guest accommodation are located in a cluster in their own grounds. Three of them were sold to private investors, but the planning regulations restricts the number that can be disposed of. The lodges are particularly well fitted out.
The 18-hole golf course, designed by former Ryder Cup player Des Smyth, first opened in 1992 and runs through a mix of mature woodland and parkland, which account for some 200 acres. The remaining 110 acres of farmland and woodland include an old stable yard along with a two-storey house and stables. There are also two adjoining cottages in need of restoration. The grounds include a number of superb walks through the mature woodlands.
As with most golf clubs, the recession has resulted in a reduction in green fee revenue following a fall in membership from 640 to 430.
However, support for the club has picked up in recent months and turnover for 2014 as a whole is expected to be higher than in recent years.
The golf facilities, including the clubhouse and driving range, can be run independently of the castle. The hotel frequently hosts wedding receptions of up to 120 guests.
Extensions
With many wedding parties looking for more spacious facilities, the hotel management has obtained planning permission for an extension to the function room as well as the bedroom facilities.
Marcus Magnier suggests that the island could be transformed into a world- class resort through a phased development over the coming years, including more guest accommodation in the hotel.
Other possibilities included a marina and yacht club, a golf academy and an equestrian centre.
The island has the advantage of being little more than a mile downriver from Waterford city, with its wide range of shopping the entertainment facilities.
The first monastic settlement on the island dates back to the sixth century. Maurice Fitzgerald, cousin of Strongbow, the English Earl of Pembroke, sailed past the island and landed in Waterford in 1160.
The island subsequently became home to the Fitzgerald family for some 800 years.
