Well-known entrepreneur and experienced investor Tom O’Gorman has checked-in to Galway’s vibrant hotel market with the purchase of the Clybaun Hotel in Knocknacarra, in a deal valued in excess of €3m. The Hotel Clybaun was offered for sale on the instructions of the joint receivers, Patrick Dillon and Michael McAteer of Grant Thornton.
The Hotel Clybaun is a modern contemporary-style hotel complex, strategically located in Knocknacarra, a largely residential western suburb of Galway with over 4,500 dwellings and a local population of over 12,000.
This profitable, three-star hotel boasts 92 spacious bedrooms and suites, excellent bar, restaurant, conference, function and wedding facilities together with an extensive and popular Leisure Centre.
While a majority shareholder in the deal, O’Gorman has co-invested in the Clybaun Hotel with leading property asset management specialists, Capital Assets. Capital Assets advised on the purchase deal and will spearhead the ambitious €1m hotel refurbishment and management team.
Commenting on the acquisition of the Clybaun Hotel, Tom O’Gorman said that this week’s announcement is great news for the 35 staff at the hotel, and also for the local community of Knocknacarra who have been crying out for a stylish, quality hotel that serves up fabulous food with world-class service and leisure facilities.
“Now that the deal is complete, we will immediately embark on a major redevelopment of the Clybaun Hotel that will help transform this hotel to its former glory as a flagship destination that services the busy suburb of Knocknacarra,” O’Gorman said.
Commenting on his investment partnership with Capital Assets, Mr O’Gorman added, “I’m delighted to be working with the Capital Assets team and we are looking at deploying further investment capital into the leisure sector. We are targeting the transformation of under-performing mid-range hotels in good locations into high-performance hotels with profitable trading profiles.”
Expanding on the partnership, Michael Hogan, Managing Director of Capital Assets, adds, “Capital Assets occupies a unique position in the property investment market, providing forensic control over the asset from an investment performance point of view, ensuring we maximise the investor yield and enhance the asset to its fullest potential.”
Dermot Curtin of CBRE Hotels, sole selling agent for the Clybaun Hotel commented: “In recent years, only a small number of Galway city hotels have been offered to the market and the sale of the Hotel Clybaun attracted over 70 direct enquiries leading to a very competitive bidding process. The sale afforded these interested parties quite a unique opportunity to acquire a modern, full service hotel in the city and, by doing so, establish a sizeable foothold in the much sought after and extremely lucrative, Galway hotel market”.
The Hotel Clybaun is an ideal base from which to explore the vibrant city of Galway and the many visitor attractions of the wider region such as Kylemore Abbey, Clifden, the Aran Islands and the rugged beauty of the Connemara Gaeltacht. Hotel Clybaun is just a few minutes drive from the city centre and from Galway’s famed seaside Resort of Salthill and is also close to Galway University, Leisureland, the National Aquarium and the GAA HQ at Pearse Stadium.
