Saturday 23 September 2017

Hotel ibis for sale for €13m following major 2015 revamp

The Hotel ibis has seen major investment in the past 14 months
The Hotel ibis has seen major investment in the past 14 months
Ronald Quinlan

Ronald Quinlan

The Hotel ibis in Dublin has been brought to the market by specialist business property adviser Christie & Co with an asking price of €13m for the hotel itself, and €500,00 for an adjoining 0.81 acre site.

While its current owners, Hetherly Capital Partners, only completed their purchase of the hotel in August 2015, having already agreed to acquire it in a sale and franchise back deal for a sum in excess of €5m in 2014, the property is expected to sell for signicantly more this time round having benefited from major capital investment over the past 14 months.

Located at junction 9 of the M50 opposite the Red Cow Luas interchange, the ibis is being sold in three lots.

Lot 1 carries an asking price of €13.5m and represents the entire and comprises the hotel and its adjoining 0.81 acre site, which is zoned for residential; Lot 2 consist of the Hotel ibis and carries an asking price of €13m; and Lot 3 consists of the 0.81 acre site which has an asking price of €500,000.

The Hotel ibis is a 150-bedroom, limited service facility with two meeting rooms and an open-plan, ground-floor space which features the hotel reception, bar, lounge and dining areas that can cater for approximately 100 people.

As part of its recent refurbishment, the hotel's guest bedrooms have all been upgraded to what the agents say are "the most modern brand specifications". The hotel is available for sale with the existing franchise agreement with Accor Hotels under the ibis brand, allowing the business to continue to function, benefiting from Accor's loyalty programme and brand recognition.

Dave Murray, director at Christie & Co Ireland, said the hotel had seen a "significant improvement in trade in the past 24 months with further potential to drive occupancy and Average Room Rate [ARR]".

Highlighting the hotel's attractiveness, Murray noted how Dublin's hotel market had enjoyed the highest growth in Europe for two consecutive years with RevPAR growth in 2015 well in excess of 20pc and similar growth forecast for 2016 according to STR.

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