Dalata Hotel Group has entered into an agreement to acquire the Pillo Hotel & Spa in Galway city.
The Company has agreed to acquire the freehold interest in the Pillo Hotel Galway along with a number of related interests for a consideration of €10.5 million. The acquisition is conditional upon the approval of the Competition and Consumer Protection Commission, but is expected to complete within 30 working days.
The Pillo Hotel Galway is a 4 star hotel located close to Galway City Centre. The hotel contains 104 bedrooms, a spa and fitness suite, a restaurant and 5 meeting rooms. Included within the purchase is an underground car park with 215 spaces, 400 square metres of fully let office space and a vacant retail unit comprising 1,200 square metres.
Management have identified a number of value enhancing development opportunities within the existing building. Subject to securing planning permission, this will result in additional bedrooms and a new dedicated meeting facility at the hotel.
The consideration is payable in cash. The Pillo hotel has been managed by Dalata since November 2011 under a management contract. EBITDAR attributable to the property in 2014 is expected to be circa €0.8 million.
Pat McCann, Chief Executive Officer of the Company, said:
“We are delighted that we have acquired this excellent hotel in such a great location. Galway is a thriving city with both a strong tourist and corporate market. It is good news for all the staff in Pillo as we intend to further develop the hotel in the coming years.”
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