With business at Irish hotels now back at more than 80 per cent of pre-Covid levels, the sale of the Wellington Hotel in Dublin city centre is expected to attract strong interest from a range of investors and owner-operators.
Located in the heart of the city’s Temple Bar area, the Wellington briefly comprises a newly developed 38-bedroom hotel complemented by extensive bar and restaurant facilities extending to 340sq m (3,660sq ft). The property is being offered to the market by CBRE at a guide price of €18 million. While that figure equates to €473,684 per key, which is far higher than the €300,000 per-key average paid across all Dublin hotel sales in 2021, the premium can be accounted for by the relative scarcity of hotel rooms in the Temple Bar district (less than 1,000) and by the ongoing recovery in the tourism sector.
Figures released this week by travel industry analyst STR show that over the 28 days to April 11th, Irish hotel room occupancy levels reached 81.3 per cent of their pre-pandemic number. This ranked the Republic at number three in Europe, behind the UK, which had 87 per cent of 2019 levels, and Poland, which was at 84.5 per cent.
Quite apart from offering its purchaser the opportunity to secure ownership of a new and unbranded hotel in a proven city-centre location, the sale of the Wellington will provide the new owner with scope to generate significant income from its bar and restaurant facilities from guests and other visitors.
Located in a high-profile corner position, overlooking the River Liffey, the hotel is situated in the centre of Dublin’s main business and shopping districts and a short walk from the city’s most popular tourist areas including Trinity College, City Hall, Christchurch, the Guinness Storehouse, the GPO, St Stephen’s Green, and Grafton Street. The subject property is well served by public transport including the Luas, Dart, mainline rail and numerous Dublin Bus routes.
Paul Collins, executive director at CBRE’s hotel and licensed division, says: “The sale of the Wellington Hotel offers investors a superb opportunity to acquire a landmark newly built 38-bedroom hotel in the heart of the famous Temple Bar area. Unbranded hotels in Dublin city centre rarely come to the market and this property gives purchasers an opportunity to establish and grow their business in one of the most sought-after locations in Dublin.”
