The planned acquisition of the Absolute Hotel by the Talbot Collection was first reported by the Irish Independent in September.
The deal values the 99-bedroom Absolute Hotel at €18m.
The Talbot Collection is owned by the Pettitt family. They also own a number of SuperValu supermarkets, mainly in the east of the country.
The Talbot Collection already owns the Talbot Hotel in Wexford town, as well as five other Talbot-branded hotels in locations including Cork, Dublin, Clonmel and Carlow. It also owns the Talbot Suites self-catering apartments in Wexford town, and Newbay House in the county.
“This investment reflects our confidence in Ireland’s hospitality industry and our ongoing commitment to our people and guests,” said Philip Gavin, managing director of the Talbot Collection.
The Absolute Hotel was put up for sale earlier this year alongside its sister hotel, the Kilkenny Ormonde Hotel, by boom-time developer Jerry O’Reilly.
Estate agents JLL were guiding a total of €50m for the two hotel properties, which were being sold either individually or as a pair. That price tag also included a large multi-storey carpark beside the Kilkenny Ormonde Hotel.
JLL’s marketing material for the hotels noted that they are located in “coveted” city centre locations where there are “high barriers to entry”.
JLL said that hotel industry revenue per available room in Limerick grew by 20pc in 2023 and by 3pc in 2024, while the city is undergoing significant regeneration.
The Talbot Collection said the acquisition of the Absolute Hotel continues a period of sustained investment across the group’s portfolio. It completed multi-million-euro refurbishments at Talbot Hotel Cork and Talbot Hotel Midleton in 2024, following their rebrand under the unified Talbot identity.
The group said it has also invested significantly in upgrading guest facilities and staff amenities across all properties in recent years.
In the 12 months to the end of January 2024 – the latest period for which accounts are publicly available – the Pettitts’ hotel and supermarket group posted revenue of €184.2m, which was up from €169.5m a year earlier. It made an €8m pre-tax profit in the 2024 financial year, compared to €6.5m in the previous period.
Of its revenue in the 2024 financial year, €51m was generated by its hotel operations.
Meanwhile, the former US operator of the five-star Shelbourne Hotel in Dublin booked a €42.82m gain from the sale of the hotel’s trade last year.
That is revealed in new accounts for KW Shelbourne Ops Ltd which shows that prior to the completion of the sale of the Shelbourne Hotel on October 31st 2024, the hotel firm recorded revenues of €43.69m.
The revenues of €43.69m for the 10 months compares to revenues of €52.69m for the prior 12 month period.
The Shelbourne, which opened its doors in 1824 and is located overlooking St Stephen’s Green, was acquired by Archer Hotel Capital in 2024 from US property giant, Kennedy Wilson for a reported €260m which included the prized asset of the 265 bedroom building. Archer also owns the nearby Conrad hotel.
The €42.82 gain booked from the sale of the trade of KW Shelbourne Ops Ltd was the chief factor behind the firm recording pre-tax profits of €50.32m.
The company recorded a post tax profit of €47.8m after taking into account a corporation tax charge of €2.43m.
Underlining the earning power of hotel rooms at the Shelbourne, room revenue last year totalled €29.55m while other revenue totalled €14.13m.
Advertised room rates for Friday November 21st show that the price per bedroom per night ranges from €583 to €1,584.
On the €42.82m gain, a note attached to the accounts states that on October 31, 2024, the trade, assets and goodwill of the company were transferred to Archer SB Limited and the consideration amounted to €53.45m.
The gain of €42.82m is arrived at after the €53.45m consideration is less the value of the tangible fixed assets of €4.2m; stock valued at €398,409, cash of €16.97m, debtors of €5.72m offset by creditors of €16.7m.
The profits last year take account of combined non-cash depreciation and amortisation costs of €5m. The directors state that the company is now dormant and has not carried out any trade since October 31, 2024.
The KW Shelbourne OP Ltd firm operated the Shelbourne Hotel and the ownership of the fixed Shelbourne property asset resided with another Kennedy Wilson entity.
At the end of December, KW Shelbourne Ops had accumulated profits of €54.4m. Cash funds reduced from €12.77m to €2.28m. In August, Archer announced a €50m renovation which will involve renovating 226 rooms as part of a year-long refurbishment programme.
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