Cork’s Clarion Hotel on the Market for €30m
The prestigious Clarion Hotel Cork – a 4 star hotel investment guiding in excess of €30 million is being offered for sale by Savills and JLL.
The Scott Tallon Walker designed hotel opened in 2005 and has an enviable waterfront position within the City Quarter development on Lapps Quay – the heart of the Central Business District in Ireland’s second largest city. Cork, as the commercial centre for the south, enjoys strong corporate and multinational presence including Amazon, Apple, EMC2, GlaxoSmithKline, Intel, Pepsi and Siemens. Cork is a leading tourist destination and is the gateway to the Wild Atlantic Way.
Offered for sale subject to existing occupational leases with Merzolt Limited (approximately 25 years remaining), and operated by Choice Hotels Ireland under the four star Clarion brand, the 191 bedroom hotel represents a rare opportunity to acquire a modern and very high quality leased hotel investment. The hotel has extensive conference and leisure facilities and is probably the finest hotel in Corks CBD. At €30m, the current annual rent of €2.4m represents a net initial yield of 7.66%.
Tom Barrett, Head of Hotels & Leisure, Savills commented: “Cork hotels are very busy with high occupancy rates and RevPAR growing for the last 5 years. The Clarion represents a great opportunity to acquire the leading hotel in Cork, a market in which twelve hotels have transacted in this cycle of the property market.”
Dan O’Connor, Vice President, JLL Hotels & Hospitality Group commented: “The Clarion Hotel Cork is the largest and arguably the best hotel in Cork City. It offers a strong existing leased income stream with bright prospects for future rental growth buoyed by a robust Cork hotel trading market and positive developments within Cork City, including the announcement that Cork’s first Convention Centre will be constructed nearby”.
The Cork hotel market has now recorded five consecutive years of RevPAR (revenue per available room) growth (up 11% in 2014 according to STR Global), with the Cork market now outperforming comparable UK cities such as Birmingham, Bristol, Cardiff and Glasgow.