The fund behind hotels such as The Marker and Powerscourt is set for a €100 million spending spree on more investments in the sector.
Tetrarch Capital, the Irish property investment firm, has created a hospitality division that will operate and manage the fund’s hotel, leisure and accommodation portfolio, and plans to invest a further €100 million in the market over the next two to three years.
“All the evidence points to continuing positive trends in the Irish hospitality, leisure and rented residential sectors, particularly for well-managed properties in locations of high demand,” Michael McElligott, the chief executive, said.
Tetrarch, which was previously known as Brehon Capital, has €500 million of assets under management. About 60 per cent are investment and development properties in the hospitality, leisure and accommodation sectors.
It currently co-owns and manages assets including The Marker, Powerscourt Hotel, Mount Juliet, The Dawson Hotel, Mount Wolseley and the Citywest Hotel.
“We’ve experienced double-digit revenue growth in all our properties this year, with robust occupancy levels throughout the year,” Mr McElligott said.
“The performance of our accommodation estate in 2015 gives us the confidence to make further acquisitions both inside and outside Dublin in 2016 and beyond.
“We believe our new operating platform will greatly assist in the growth of our portfolio and enhance the quality of our offerings across our various properties.”
The fund also announces plans today to invest €25 million in building a 180-unit aparthotel — serviced apartments — on a recently acquired site on Mark Street, adjacent to Trinity College Dublin.
Tetrarch also plans to acquire a small number of golf resorts and courses, expanding on its existing golf interests at Mount Juliet, Mount Wolseley and Citywest.
Damien Gaffney, the new managing director of Tetrarch Hospitality, said it would build on “a number of excellent additions to our hospitality and leisure portfolio this year”.
“As we approach 2016 we’re very positive about the opportunity to undertake further compelling acquisitions,” he added.
Mr Gaffney will also take on the role of chief operating officer for the wider Tetrarch Capital group, with Gillian Curran taking on his former role as chief investment officer.
Glenn Valentine, the current general manager of Citywest Hotel, will take up the position of director of operations within the hospitality operation.
It is completing the recruitment of several other staff to its senior management team across the other key roles of finance, investor reporting, revenue management, HR, procurement and IT, and will employ a team of ten when fully staffed.