THE landmark Malton Hotel in Killarney has been purchased by a local family, KillarneyToday.com can confirm.
The successful bid for the 160-year-old hotel was tabled by Joe Scally who owns the Royal Hotel in Killarney, the five-star Hayfield Manor in Cork and the building that currently houses Jimmy Brien’s Bar in Killarney.
It is understood that Mr Scally will take over the business with his sons, Mark and Brian, both of whom have extensive experience in the hospitality sector.
Mr Scally, a former psychiatric nurse, is a brother-in-law of Padraig Treacy of the Killarney Park Hotel who was part of the consortium that previously owned the Malton.
The 172-bedroom property, which is set on 12 acres in a town centre location, was put on the market by NAMA last May and a number of investors expressed an interest before it was whittled down to just two bids.
An approximate price tag of €12-€15 million had been placed on the four-star establishment which changed hands for a whopping €42 million just eight years ago.
The Malton has been trading exceptionally well and it remains a very profitable business. It boasts a very strong wedding and events trade and visitor numbers have remained impressive in recent years.
Over 60 weddings have already been booked for next year and The Malton remains one of the most in-demand conference venues in the country.
It was sold as a going concern, having failed to cope with the burden of debt.
Full planning permission is in place for a six-acre mixed use retail, commercial and residential development in the adjoining grounds.
Permission was granted for that project but it was long-fingered due to constraints imposed during the economic downturn.
The plans provided for a five-storey development, including a shopping mall, offices, a hotel extension, 19 apartments, a community centre and underground car parking.
A separate application for a 270-foot viewing tower was also submitted by the former controlling company, BL Beara, in 2009.
The Malton – formerly the Killarney Great Southern Hotel – currently has over 200 staff on its books.
A spokesperson for the hotel said it was great to see the property staying in local hands.
