It was announced this week that 24 Suites (62 bedrooms) in the Clayton Hotel, Cardiff Lane, Dublin 2 have been brought to the market by Savills with a guide price of €8m.
This investment opportunity comprises of 24 hotel suites containing 62 bedrooms, situated in the original hotel which opened in 2005. These suites are leased to Hanford Commercial Limited, a subsidiary of Dalata plc and the entire hotel is operated under the Clayton brand.
The 4 star hotel opened in 2005 with 213 bedrooms and was extended to 304 bedrooms in 2008, making it one of central Dublin’s largest & most successful hotels. The Hotel occupies a high profile location on Cardiff Lane, at the heart of the south docks and Grand Canal Dock.
The immediate area is home to many global businesses including Accenture, AirBnB, Facebook, Google, along with several leading law firms such as Matheson, McCann Fitzgerald and William Fry.
At €8m, or €129,000 per bedroom, the current annual rent of €467,200 represents a net initial yield of 5.6%, with very strong reversionary potential at the next rent review in January 2018. All leases are FRI with upward only rent reviews and an unexpired lease term of 24.2 years.
The Dublin Hotel market operated at 82% occupancy in 2015. Combined with very limited new hotel supply expected before 2019, this supports strong profit growth and significant rental growth potential in January 2018.
Head of Hotels & Leisure at Savills, Tom Barrett commented, "This sale offers investors a rare opportunity to acquire a meaningful interest in one of Dublin’s most profitable hotels."
He added, "There is significant office development in Dublin Docklands, with a current potential pipeline of over 400,000m2. "
Source: www.businessworld.ie
