€6.5m for Athlone Radisson Blu Hotel

Another provincial hotel in receivership is to be sold at a fraction of its original cost.

Selling agents CBRE is not providing any guide price for the Radisson Blu Hotel in Athlone which goes for sale today, but industry sources expect the four-star business to sell for a figure in the region of €6.5 million.

The 128-bedroom hotel, trading profitably after a strong business recovery over the past two years, was managed by the Galway-based Earls Holdings until Ulster Bank appointed Kieran Wallace of KPMG as receiver in 2012.

No expense was spared in developing the hotel in 2004 on the edge of the river Shannon and right in the town centre opposite Athlone Castle.

Its facilities include 128 bedrooms and suites, a bar, restaurant and lobby lounge as well as air-conditioned conference and banqueting suites for over 1,000 people and a ballroom to accommodate 650. There is a health and leisure centre including a swimming pool, an outdoor terrace overlooking the Shannon with direct access to Athlone Marina and underground and surface parking for 169 cars.

Dermot Curtin of CBRE described the Radission Blu as "one of the most successful and profitable hotel operations in Ireland" and said it was particularly noticeable that it had been well maintained and regularly refurbished over the years.

He said he expected Irish and overseas interest in the hotel in line with the strong demand for other well-located, modern and profitable operations in the larger provincial centres.

Another strong selling point is that with the current franchise agreement due to run out at the end of December, a new owner will be free to rebrand the hotel if desired.