The Imperial Hotel on Cork's South Mall has been bought for £5.1 million by the Flynn family, which already owns Kytlers Inn in Kilkenny, the Old Ground Hotel in Ennis and the Park Hotel in Dungarvan.
It is understood that the Flynns plan to invest £2 million in a refurbishment of the Imperial, which has 101 bedrooms and is one of the biggest hotels in Cork city.
The Imperial was sold by the British hotels group Hanover International which bought the hotel in August 1995. In a statement on the sale, Hanover said it had become increasingly evident that it would have to invest substantial funds in the Imperial to maintain its market share.
"Since acquiring the Imperial Hotel, nine new hotels have been opened in Cork and the surrounding area. As a result of these developments a review of the group's medium and long-term objectives was conducted and the decision made to take advantage of the buoyant Irish hotel market and accept an appropriate offer."
The buyers are paying £3.5 million in cash, a presale dividend of £350,000, as well as taking on the Imperial's £1.17 million debt. Profitability at the hotel last year was negligible, with pre-tax operating profits of just £47,169 on turnover of £2.68 million.
