Two Highly Profitable Well-Known Dublin Hotels for Sale for €40million
On behalf of the Receiver Kieran Wallace KPMG – Tom Barrett of Savills has been appointed to sell the Clarion Hotel IFSC and Clarion Hotel Dublin Airport. The hotels are being offered for sale individually or together as one lot.
Choice Hotels Ireland currently manage the hotels and both carry the Clarion flag under a franchise agreement with Choice Hotels International. The properties are available free from this management agreement and Clarion brand, if required.
According to Tom Barrett of Savills Hotels and Leisure “The joint sale of the Clarion Hotel IFSC and Clarion Hotel Dublin Airport is the most exciting Hotel opportunity to come to the Irish market this year. It is a fantastic opportunity to gain a significant foothold (412 bedrooms – 4 star) in the Dublin Hotel market – in two prime locations. Both hotels are trading well, and are highly profitable. The properties have the added advantage of being available free of management contract and brand – offering flexibility and branding opportunities to a new purchaser”
Savills are offering the Clarion Hotel IFSC at a guide price of €30m, with the Clarion Dublin Airport guiding at €10m, or both hotels together in one lot for €40m. The properties are for sale by Private Treaty.
The Clarion Hotel IFSC is a leading 4 star city centre hotel overlooking the River Liffey, in the Docklands area. This modern hotel comprises 165 bedrooms, lounge, bar, restaurant and full leisure club (approximately 1,000 members). There are extensive conference and events facilities which can cater for up to 150 people – with 10 conference rooms of various sizes. Due to its fantastic location in the International Financial Service Centre (IFSC), and close proximity to the Convention Centre Dublin, The O2 Arena, Bord Gais Theatre, Aviva Stadium and Croke Park, the property is ideally located to capture both the corporate and leisure trade, with a strong mix of both domestic & international guests. Average Room Rate in the hotel is well over €100 per night, with 2012 Occupancy levels in the 80’s%. These positive indicators reflect the buoyant Dublin Hotel Market which continues to improve, with STR Global reporting RevPAR growth of approximately 13% in 2012, after growth of approximately 12% in 2011.
The Clarion Hotel Dublin Airport is Dublin’s original airport hotel located on a prominent site at the entrance to the Airport campus. This 4 star hotel includes 247 bedrooms, lounge, bar, restaurant along with superb conference and banqueting facilities. The property also has the benefit of 224 surface car parking spaces. The hotel is highly profitable, with 2012 Occupancy in the mid 70’s%, with Average Room Rate in the mid €60’s per night. Airport passenger numbers grew to 19.1m in 2012, up from 18.7m in 2011. In addition, the Dublin Airport Authority (DAA) recently announced plans for the creation of a 70-acre business park on the Airport grounds which would significantly transform the Airport campus having already benefited from the addition of the ultra-modern Terminal 2 in 2010. The hotel is held on a long leasehold basis from the DAA, with approximately 55 years unexpired term remaining. There is a relatively modest level of rent payable to the DAA comprising a base ground rent, along with an additional low percentage of turnover.