THE Galway-based Flannery hotel group has paid about £2.25 million for the Ashling Hotel, Parkgate Street, Dublin 7. The new owners plan to increase the number of en suite bedrooms from 56 to 150 and to provide a multi-storey car-park at the rear. The existing premises will also be upgraded at a total cost of around £3 million.

Flannery will be able to avail of 50 per cent capital allowances because the hotel is located in a tax designated area.

The hotel, which had a turnover of £1.6 million last year, was withdrawn at auction at £1.8 million last January and subsequently sold in private negotiations with Hamilton Osborne King.

Flannery has three hotels in Galway: one at Dublin Road, which has 100 bedrooms; the Imperial Hotel at Eyre Square, which has 100 bedrooms; and the Eglinton Hotel in Salthill, which has 35 bedrooms.

The hotel has benefited from its location close to Heuston Station and is expected to capitalise on its proximity to the new National Museum at Collins Barracks.

It is also located along the route of the proposed light rail line, Luas, which will provide a speedy access to the city centre.