Group snaps up Derry's Tower Hotel for £4.4m
The Tower Hotel in Derry has been sold for almost £4.4m to the Dalata Hotel Group which owns the Maldron Hotel in Belfast.
The hotel, which will be rebranded as Maldron in Butchers Street, is the only hotel within the historic Walls of Derry and was put up for sale by CBRE Hotels with an asking price of £3.7m.
The purpose-built hotel, which netted a profit last year of £500,000, boasts 93 contemporary ensuite bedrooms, conference and banqueting facilities for up to 400, and has planning permission for another 52 bedrooms.
Dalata's chief executive Pat McCann said: "We are excited at the prospect of bringing new business to a city that has seen many positive changes in recent years."
He added: "The hotel will be rebranded to Maldron. As part of a rapidly growing hotel group, our new colleagues can expect many opportunities for career development."
Derry has enjoyed unprecedented growth in tourism since 2012 when the city hosted one of the Clipper Round the World Yacht race stages, and last year the City of Culture celebrations saw that success continue.
Before the four-star hotel went on the market in June, it was already well known that a number of major hotel chains such as Holiday Inn were interested in establishing a presence in the west bank of the city.
CBRE Hotels director John Hughes said: "The sale offered a great opportunity for investors to acquire an already profitable city centre hotel, that also offers potential for further expansion."