CIE seeks partner for hotel and commercial development in Kilkenny city

Funds, investors and developers expected to tender for MacDonagh station site

An aerial view of the CIÉ development site adjacent to MacDonagh Station in Kilkenny

An aerial view of the CIÉ development site adjacent to MacDonagh Station in Kilkenny


Investors looking to tap into Kilkenny city’s proven popularity as a tourist destination will be interested in the upcoming tender process for the development and operation of a hotel on a site owned by CIÉ immediately adjacent to MacDonagh station and MacDonagh Junction Shopping Centre.

Rather than selling the site or building a hotel itself, CIÉ has instructed Lisney to secure a partner to enter into a development agreement involving a five-year licence/agreement for lease, with a 300-year lease upon completion.

The minimum initial licence fee rental is being fixed at €175,000 per annum, and interested parties are being invited to bid in a tender process by noon on Friday, June 28th.

The site, which is being used as a 45-space car park, extends to 0.33 hectares (0.82 acres) and is zoned “general business” under the Kilkenny City & Environs Development Plan 2014-2020.

It is being offered to the market with the benefit of planning permissionfor a 135-bedroom hotel, leisure and conference facilities, offices and ancillary uses/restaurants/bars. Approval for the hotel’s development falls under the MacDonagh Junction parent permission (Building No 6) granted by An Bord Pleanála in 2004 (reference: PL 62.207285).

Landmark building

It is expected the site would suit a landmark building subject to the agreed detail of a future planning application. Development works will not impair the operation of MacDonagh train station or the shopping centre.

Ross Shorten and Ben Fitzgerald of Lisney say they expect the significantly increased hotel room occupancies in the city to drive demand for the MacDonagh Station site from funds, investors and developers.

The subject site is located within close proximity to many of the most-popular visitor attractions including the Kilkenny Medieval Mile and Kilkenny Castle.

Kilkenny city is widely renowned for its cultural festivities such as the Kilkenny Cat Laughs Comedy Festival, the Kilkenny Arts Festival and Yulefest.