Galway’s Maldron Hotel brought to market for £11.3m

The Maldron Hotel Oranmore in County Galway has been placed on the market for sale as an investment for €13m (£11.3m). 

It is reported that the hotel opened in 1998 and has since been extended. It is situated in a highly accessible location, in proximity to several business and industrial parks, as well as Ballybrit Racecourse and public and private hospitals in Ireland’s fourth largest city.

The 113 bedroom hotel is said to represent a “rare” opportunity to acquire a modern and very high quality leased hotel investment as it has extensive conference facilities, a full leisure club and pool, and is located 10 minutes from five business parks and two industrial estates. 

At a purchase price of €13m (£11.3m), the current upward only annual rent of €900k (£787k) represents a net initial yield of 6.3%, with the next rent review to take place in January 2023.

The sale is also subject to an existing occupational lease with Caruso Limited as guaranteed by Dalata, with over 11 years remaining and operated by Dalata Hotels Ireland under the four-star Maldron brand.

According to Savills, Galway is the pharma/medtech centre for the west and enjoys strong corporate and multinational trade from Boston Scientific, Johnson and Johnson, as well as Medtronic, Fidelity Investments, Oracle, SAP, Smyths and Wayfair. 

In addition, Galway is a “leading” tourist destination with numerous annual festivals and is the largest stopping point on the Wild Atlantic Way.

Tom Barrett, head of hotels and leisure at Savills, who is handling the sale, said: “Galway hotels trade with consistently high occupancy and strong ADR growth. Year round, the city attracts high spending domestic and international tourists. 

“The Maldron Oranmore represents a rare opportunity to acquire one of Europe’s strongest hotel covenants.”