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Prime City Hostels in Dublin and Galway for sale

Written by Robert McHugh, on 22nd Jun 2018. Posted in Property

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The opportunity to acquire a duo of hostels has arisen with the announcement that Barnacles Hostel, Temple Bar, Dublin 2 and Barnacles Hostel, Quay Street, Galway are for sale by private treaty through hotel property specialists CBRE.

These prime assets are available in one or more lots and CBRE say the sale of the Barnacles portfolio provides an exceptional opportunity to acquire a well-established hostel business in excellent condition with a combined 289 bed spaces.
Barnacles Hostel Dublin is located in the heart of Temple Bar area adjacent to the Temple Bar pub, the Temple Bar Music Centre and Meeting House Square. It comprises 171 bed spaces with 35 rooms spread over three upper floors over ground floor reception. The accommodation comprises a mix of bunk and single beds in private and shared rooms, all of which are en-suite. There are communal public areas including a communal kitchen and common “chill-out” room.
Barnacles Hostel Galway is a multi-faceted business comprising hostel properties, convenience shop and restaurant investment property. The entire are centrally located on Quay Street, in the heart of the Latin Quarter of Galway City. The Hostel comprises a total of 118 bed spaces with the main four storey building containing 112 bed spaces. There are six additional bed spaces located in two buildings known as Kirwan’s Lane Townhouse and Teach Ard both of which are located to the rear of the property.
Also included in the sale and fronting Quay Street is No 10, a busy and highly profitable convenience shop which forms an integral part of the hostel turnover. The shop benefits from a continues all day trade on the busiest pedestrian street in Galway linking Eyre Square to the Spanish Arch area of the city.

An adjoining restaurant investment property – Trattoria Restaurant – is available as a separate lot through joint agent O’Donnellan Joyce. The restaurant comprises a ground floor open plan area, kitchen, toilets and ancillary stores and extends to approx. 130 sq. m. (1,400 sq. ft.). The restaurant has traded as a highly successful venue and popular with locals and tourists. The restaurant is held on a 35 year lease from 1994 at a current rent of €73,200 pa. The next rent review is 2019.
The properties are offered for sale as follows:
LOT 1: The Entire - offers in excess of €11m
LOT 2: Barnacles Hostel Dublin - offers in excess of €6.5m
LOT 3: Barnacles Hostel Galway including the restaurant investment property (tenant not affected) – offers in excess of €4.7m
LOT 3A: Barnacles Hostel Galway, excluding the restaurant investment – offers in excess of €3.4m
LOT 3B: Restaurant Investment – offers in excess of €1.35m

Commenting on the opportunity, Director at CBRE Hotels, John Hughes said, "The sale of the Barnacles portfolio of hostels provides a superb opportunity to acquire a ready-made hostel business of scale with both properties occupying prime trading positions in the heart of Temple Bar in Dublin and Quay Street in Galway. Both properties are presented in excellent decorative order throughout and the businesses are highly profitable with increasing revenues."

Source: www.businessworld.ie

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