US chain admits that it has "expressed serious interest" in the 169-bedroom hotel, writes JACK FAGAN
THE AMERICAN-BASED Hyatt Hotels Corporation has emerged as the most likely group to buy the Grand Canal Square Hotel in the south Dublin docklands. The 169-bedroom hotel, beside the Grand Canal Theatre, was completed more than two years ago and is expected to sell for a figure in the region of €20 million to €25 million. Fit-out costs will run to a further €8 million to €10 million.
Peter Norman of the Hyatt Hotel Corporation, said yesterday that the new hotel was one of a number of opportunities they were looking at in the city. However, they had not advanced discussions to a stage which would allow them to announce that they had concluded a deal.
Asked whether the group had made a formal offer for the Grand Canal hotel, he said they had “expressed serious interest in that opportunity along with other hoteliers”.
Earlier reports in the hotel industry had suggested that Hyatt had been the highest bidder in a private tendering process conducted by KPMG. About half a dozen hotel groups, including at least one Irish company, are said to have submitted formal offers for the hotel.
Should Hyatt emerge as the new owner it will provide a major boost to the hotel and tourist industries at a time when there is a surfeit of hotels in Dublin and many parts of the country.
The Grand Canal hotel was developed by Terry Devey and funded by Bank of Scotland (Ireland) which closed down its banking operation here last year.
Devey also developed an adjoining block of 84 apartments, five double-height retail units on the ground floor and 138 underground car parking spaces. The apartments are expected to be offered for sale in the coming months.
Devey originally agreed to forward sell the hotel to the Galway developer and hotelier Gerry Barrett for €50 million in a planned turnkey operation in 2006.
The transaction was never completed because of the collapse of the property market and credit restrictions introduced by the banks.
The layout provides for 169 bedrooms, 21 of them suites, a restaurant, bar, ballroom, conference facilities and a spa with indoor swimming pool.
Hyatt has been looking for a suitable hotel in Ireland for many years.
Besides the Grand Canal Square hotel it is understood to have checked out a number of other hotels which have run into trouble in the past three years.
