CORK developer Owen O’Callaghan, below, has put the four-star River Lee Hotel up for sale.
The sale of the 182-bed hotel on the Western Road is expected to yield between 24m and 25m.
The 182-bedroom hotel which was developed in 2006 generates a rental income of 2.044m per year.
A spokesman for O’Callaghan Properties said: “The River Lee Hotel investment does not represent a core asset for our company and we have decided to extract value from it now rather than over the remaining 29 years of the lease.”
In addition to the hotel, which incorporates a leisure centre, meeting rooms, bars and restaurants, the development also comprised 150 apartments and underground parking.
The River Lee Hotel is let to PV Doyle Hotels on a 35-year lease which began in 2006.
The lease is subject to upward-only rent reviews linked to the Consumer Price Index.
“We believe there will be a lot of interest in this investment. There is a very attractive rent roll and an excellent covenant with the main Doyle Group. Our initial market enquiries would suggest strong buyer interest from international and indigenous investors and investment funds,” said the spokesman for O’Callaghan Properties.