International real estate advisor Savills has been appointed, on behalf of the receivers KPMG, to sell the Clarion Hotel IFSC and Clarion Hotel Dublin Airport. The hotels are being offered for sale by private treaty either individually at the respective guide prices of €30 million and €10 million, or together as one lot for a guide price of €40 million.
The Clarion Hotel IFSC is a leading four-star, city center hotel overlooking the River Liffey in the Docklands area of Dublin. The modern hotel comprises 165 bedrooms, lounge, bar, restaurant and full leisure club with approximately 1,000 members.
The property includes 10 conference rooms of various sizes and events facilities which can cater for up to 150 people. Due to its 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 situated to capture both the corporate and leisure trade, with a strong mix of both domestic and international guests.
The hotel’s average room rate is more than €100 per night, with 2012 occupancy levels at approximately 80%. These positive indicators reflect the buoyant Dublin hotel market which continues to improve, with STR Global reporting RevPAR growth of approximately 13% in 2012, compared with growth of 12% in 2011.
The Clarion Hotel Dublin Airport is the city’s original airport hotel located on a prominent site at the entrance to the Airport campus. This four-star hotel includes 247 bedrooms, lounge, bar and restaurant along with superb conference and banqueting facilities.
The property is highly profitable with 2012 occupancy levels around 75% and average room rates at approximately €65 per night. Airport passenger numbers grew to 19.1 million in 2012, up from 18.7 million 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 that has already benefited from the development of the modern Terminal 2 in 2010. The hotel is held on a long leasehold basis from the DAA, with approximately 55 years unexpired term remaining.
Tom Barrett of Savills Hotels and Leisure team in Ireland, says: “The joint sale of the Clarion Hotel IFSC and Clarion Hotel Dublin Airport is the most exciting opportunity to come to the Irish hotels sector so far this year. Comprising a total 412 four-star bedrooms it represents the chance for an investor to gain a significant foothold in the Dublin hotel market in two prime locations. Both hotels are trading well and are highly profitable.”
Choice Hotels Ireland currently manage the hotels and both properties 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.