Corporate
Finance

Acquisition Opportunities

CORPORATE FINANCE


Cliste Hospitality acquired 8 hotels between 2014-2019. While much of the international investment focus was on Dublin hotel investments, there was a strong recovery taking place in regional tourism. Tourism outside of Dublin is very much reliant on the leisure market segment, representing approximately 70-80% of its business, with corporate representing no more than 20%. In terms of source markets, 67% of Ireland’s regional hotels business comes from the domestic market, with 14% from North America, 10% from mainland Europe & 7% from the UK.

As the recovery from the Irish financial crisis took hold, the domestic consumer was spending a lot more of their income on holidays, short breaks and dining out. At the same time, international numbers into country reached a record high, driven by increased air capacity from North America & mainland Europe. While most international visitors into Ireland want to visit Dublin, they also want to see the Irish rural landscape and tourism hotspots. Locations such as Kilkenny in the east of the country and Kerry, Clare, Galway & Sligo on the west coast have benefited hugely from the surge in international tourism.

Cliste Hospitality identified the opportunity in the regional hotel sector. During this time, the investment lens was on Dublin, so we were able to acquire a number of these hotel assets off market or with very little competition. Cliste built a good reputation for execution of purchases and because of this, we are regularly approached with acquisition opportunities.

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Cliste’s Acquisition

Strategy


Cliste Hospitality’s strategy is focused on:
  • 4- or 5-Star Hotel Assets.
  • Minimum size of 80 hotel bedrooms or room revenue representing at least 40% of total revenue.
  • Potential for a diverse business mix – domestic leisure, international leisure, corporate, weddings & events, local food & beverage.
  • Hotels that have an identifiable base business – e.g., The hotel has a history of stable occupancy or is strong in the corporate or wedding market.
  • The hotel is in a desirable location within the city/town/region.
  • If the hotel does require CapEx spend, does the CapEx spend added to the acquisition cost make the project viable.
  • The building operational layout – is it an efficient property to operate from a labour cost viewpoint.
  • What is the impact of a change of ownership/departure of current owners from the hotel (particularly if it is a well-established family business).
  • Is there enough EBITDA growth potential over the next 5 years?
  • Will the purchase enhance the portfolio, if the investors we are representing own additional hotels, and will it increase the attractiveness of the portfolio for an exit strategy?
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Let’s Talk


We embrace working with people, we’re a people business. If you’re interested in hearing more about our services, get in touch today and request a call back from our CEO.

Paul FitzGerald / Sean O’Driscoll
CEO of Cliste Hospitality / CEO of The iNUA Collection

Email ceo@clistehospitality.ie

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