Chinese equity moves into second Irish hotel

A Chinese hotelier family has acquired a hotel property out of receivership in Cork, the second-largest city in the Republic of Ireland.

International real estate adviser Savills handled the sale of the Kingsley Hotel and Leisure Centre to the Kang family on behalf of receiver Deloitte.

The financial details of the transaction were not disclosed but the property was put on the market in April 2013 at a guide price of €6 mln.

This represents the second major acquisition by the Kang family which also purchased the Fota Island Resort in Cork from NAMA in August 2013.

The Kingsley Hotel operated to a five-star standard prior to closing in November 2009 as a result of flooding which also affected much of the western side of Cork City. It was regarded as one of the finest five star hotels in Ireland prior to its closure, according to Savills.

The asset comprises 131 bedrooms, 19 apartment suites in a separate building to the hotel, two bars, a restaurant and an leisure centre with a gym and both indoor and outdoor swimming pools, as well as a spa.

Tom Barrett, head of the hotels & leisure team at Savills in Ireland, said: 'The sale attracted very strong interest both domestically and internationally which is a major vote of confidence in the Cork economy and hotel market. The market is now in its third year of positive growth.'

The Kang family was advised on the acquisition by O’Connor Pyne Accountants which confirmed that the property will be reopened as a hotel and undergo a substantial refurbishment in order to bring the asset to a class leading standard. Once re-opened, the property is expected to create over 100 jobs.