Friday 26 May 2017

Lynam's Hotel sold for nearly €6m to investor

Lynam’s Hotel on O'Connell Street has been sold for nearly €6m. The figure represents a significant premium on its €4m guide price
Lynam’s Hotel on O'Connell Street has been sold for nearly €6m. The figure represents a significant premium on its €4m guide price
Ronald Quinlan

Ronald Quinlan

Lynam's Hotel on O'Connell Street, Dublin, has been sold to a private investor for a sum close to €6m.

The price achieved for the 42-bedroom hotel, which isn't trading currently, represents a sifnificant premium on the €4m CBRE Hotels had guided for the property when they brought it to the market.

Located next to Dublin city landmarks the GPO and the Spire, Lynam's Hotel extends to some 1,280 sq m (13,800 sq ft) and includes a ground-floor, self-contained café/restaurant facility, offering its new owner the opportunity to take advantage of O'Connell Street's significant footfall. That footfall is set to increase even further with the planned redevelopment of the former Clerys department store, the nearby Dublin Central site and the Parnell Quarter.

Originally a bank premises, the four-storey building was redeveloped as a hotel in 2001. More recently, the hotel, which was put into receivership by Nama in September 2015, was one of a number of properties being used by Dublin City Council to provide emergency accommodation.

CBRE Hotels' sale of the property on the instruction of Aidan Murphy, of receivers Crowe Horwath, does not include the Spar shop at ground level, which is separately owned and not involved or in any way affected by the sale process.

While John Hughes of CBRE Hotels would not confirm or comment on the price achieved for Lynam's Hotel, he said the property had "generated significant interest from investors and hoteliers and reiterated the continued demand in hotels offered for sale in Dublin city".

"The hotel offers an excellent opportunity to re-establish a thriving business in one of the best and most central trading locations in Dublin," Hughes said.

The sale of the Zanzibar hotel development on nearby Ormond Quay, meanwhile, is nearing its conclusion with final bids due for submission on November 25. There is speculation the hotel could secure up to €6m, or €1m more than the €5m guide price set by CBRE, owing to the level of interest shown by hotel operators and investors from Ireland, the UK, Europe and China.

Located at Numbers 34 to 37 Ormond Quay and overlooking the River Liffey and Ha'penny Bridge, Zanzibar's planning permission provides for the conversion of two protected structures and the provision of an 89-bedroom hotel totalling 7,077 sq m (76,176 sq ft), of which 5,494 sq m is new-build and 1,583 sq m is retained protected structures.

Liam and Des O'Dwyer opened Zanzibar in 1998, just as the Celtic Tiger was taking off. Created with a €3.81m budget, it had a capacity of 1,200 and was part of their stable of superpubs, along with Café en Seine, Major Toms and Bad Bobs.

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