The bank-appointed receiver to the sprawling Citywest hotel complex has reached an agreement to sell it as a going concern for about €29 million to Brehon Capital Partners, the owner of the luxury Marker hotel in Dublin and Powerscourt hotel in Wicklow.
Some of the staff at the 789-bedroom property, the largest hotel in Dublin, were informed of the deal yesterday.
The remainder of the staff are due to be told today. All employees will remain with the hotel when the deal, which is scheduled to close in about 30 days, completes.
It is believed Brehon, a fund that has worked closely in the past with US asset manager Pimco, is planning to invest significant capital in upgrading the property. Brehon is conducting the purchase of Citywest using an entity called Cape Wrath Hotel.
The sale on behalf of Bank of Scotland (Ireland) by the receiver, Martin Ferris, includes the hotel and an adjoining conference centre. The complex was developed by the late developer Jim Mansfield, from whom the bank seized the property in 2010.
It is run for the receiver by Dalata, a listed hotel group run by former Jurys Doyle hotelier Pat McCann. It is unclear if Dalata will continue to run it on behalf of Brehon, as no decision has yet been reached.
The sale to Brehon is likely to face an imminent legal challenge, however. HSS Developments (HSSD), a company linked to the family of the deceased Mr Mansfield, is claiming rights to lands including the car park at the convention centre and is threatening to scupper any sale.
Claim by HSSD
HSSD, which is not the Citywest company that is in receivership, wrote to Mr Ferris this week claiming to be owed €27 million. It said that until an agreement was reached with it, it would be prepared to go to the courts to get an injunction to prevent the sale of Citywest.
HSSD is understood to have held talks with the US company behind the music-themed Hard Rock hotel and restaurant franchise about potentially teaming up to have a tilt at Citywest.
Lansdowne Francs, an Irish financial company, is also involved involved in the plan.
Hard Rock is on the lookout for expansion opportunities in Europe.
Mr Ferris recently concluded a separate court case over a previous attempt to sell Citywest. That case was settled a number of weeks ago, which is when the vendor’s attention switched to Brehon.
None of the parties involved in the sale were available for comment.
