Dalata has completed the acquisition of the Clarion hotel in Sligo town, the company said on Friday.

The group announced plans to acquire the landmark hotel for €13.1 million in January.

The Clarion is a four-star hotel which has 162 bedrooms, including 89 suites, bar, restaurant, extensive meeting and conference facilities, leisure centre and swimming pool.

A popular wedding venue, the hotel, which generated earnings before interest, taxes, depreciation and amortisation (ebitda) of €930,000 last year, opened in 2005. The property was formerly home to a psychiatric hospital that accommodated up to 1,100 patients until its closure in 1992.

The property went on the market with a guide price of €7 million in late October on the instructions of Aiden Murphy of receivers Crowe Howarth.

Dalata said it is to invest up to €750,000 in a refurbishment programme on the property, which is to be rebranded as a Clayton hotel.