Investments: With new office developments dominating the investment market in recent weeks, CB Richard Ellis is today announcing an alternative offering with the planned sale of a newly completed hotel in west Dublin with valuable capital allowances.
Hotel specialist Paul Collins of CBRE is quoting over €30 million for the Comfort Inn Hotel and Kingswood bar and restaurant on the Naas Road in Dublin 22, which is due to begin trading in the coming weeks.
Choice Hotels has agreed a rent of almost €1.4 million for the 129-bedroom hotel under a 25-year lease with no break options. Under the five yearly upwards-only rent reviews, the rent will be set either at the open market value or in line with the Consumer Price Index, whichever is the highest.
The capital allowances are up to 90 per cent of the project cost depending on the purchase price.
The hotel, which expects to get a three-star rating, is based on the former Kingswood House, a period listed building that has been sensitively preserved and extended to accommodate a bar and restaurant overlooking attractive landscaped gardens. The bedrooms are located in a newly built block which has been fitted out to a high standard.
The bar and restaurant are expected to attract considerable business from the nearby Citywest Business Park, as well as from the general area and the large number of motorists using the busy N7/Naas Road.
Choice Hotels is the largest hotel group in Ireland with over 20 properties in its portfolio in a range of locations, including Dublin, Cork, Limerick, Galway and Belfast.
For the new hotel on the Naas Road, the group will be engaging the Thomas Read Group to operate the bar and restaurant. This company has become a major bar and restaurant operator in the Dublin area where it is involved in Ron Blacks, Searsons, The Bailey and the 40 Foot bar and restaurant in Dún Laoghaire.
Collins describes the offering as "an exceptional investment opportunity" because of the strong reputations of both Choice Hotels and the Thomas Reid Group. The purchaser would not only be getting a new hotel facility and the restored Kingswood House but also capital allowances which would give them a tax shelter for rental income.
The promoters are Simon Kelly and Simon Arnold.
