Monday, February 11 14:30:55
A new hospitality investment vehicle, iNua Hospitality, has been set up, targeting four-star hotels in Ireland with up to E20 million in new funding this year.
Speaking at the launch of iNua Hospitality in Cork recently, Dr Alan Ahearne, NUIG economist and author of Time to Invest: Proposals to Restore Financial Sustainability to the Irish Hotel Industry, said investment in the sector, coupled with debt restructuring, will return hotels to profitability.
"There are solid investment opportunities available in this sector. With the hotel industry accounting for E1.3 billion in tax revenues, many of these hotel assets are profitable once restructuring takes place and they are decoupled from their current debt levels," he said.
With an increase in visitors forecast this year and predicted tourist spend of E3.5 billion, investment in the sector represents an excellent opportunity to profit on the future turnaround of the market, iNua said.
iNua Hospitality is driven by experienced financial services professional Noel Creedon and its core focus is on growing the profitability and value of investors' assets which will predominantly be in the four-star hotel market.
"The iNua opportunity means that for the first time in living memory hotels can be bought on a commercial basis providing attractive yields to investors," he said.
"We have been delighted with how investors have reacted to our proposition. It demonstrates that for well structured and well thought-out investment opportunities, investors are prepared to commit to more medium-term investment strategies," he added.
iNua Hospitality forecasts a 100pc return on capital over the lifetime of the project, which is estimated to be seven years. The investment of up to E20 million in the sector will also lead to job creation and an overall contribution to the growth and development of the Irish tourism economy.