Former Holiday Inn seized by Anglo put on market for €12m
Published 10/08/2011 | 05:00
THE former Holiday Inn hotel on Pearse Street in Dublin has been put up for sale with a guide price of €12m, according to the agents CBRE who are acting for the hotel's receivers.
The 101-room, three-star, city centre hotel is being sold by receivers for Anglo Irish Bank after the bank seized the business from owner Johnny Moran in January.
Anglo appointed receivers over the hotel on Pearse Street and over The Blarney Inn and Kildare Hotel complex that spans Kildare Street and Nassau Street close to Leinster House in Dublin.
Receivers David Hughes and Luke Charleton of Enrst & Young were appointed after the hotel owners were unable to meet a demand from Anglo Irish Bank for immediate repayment of debts of around €18m.
The sale of the former Holiday Inn, which is being launched today, is a major test of the Dublin hotel market. The hotel was sold by an earlier receiver in 2000 for IR£6.7m.
The hotel industry has been battered by an oversupply of rooms and massive falls in the number of foreign and domestic tourists travelling since the start of the crisis.
Toxic bank NAMA has closed five hotels that it seized from borrowers and owns another 83 across Ireland.
The crisis in the industry, combined with the stagnant property market, means sales have been few and far between even with receivers running some of the best known hotel properties in the country.
It means the public sale of the hotel on Pearse Street offers a rare opportunity to gauge the level of buyer interest in the market.
The agents selling the business think a buyer is likely to come from abroad rather than the home market, not least because of the difficulty for Irish buyers in finding lenders at home to support any bid.
CBRE also arranged the sale of the massive Four Seasons Hotel in Dublin to a UK-based buyer last month -- and are understood to have accepted around €15m for the property compared to an asking price of €30m and debts of closer to €50m.
Unlike the high-end Four Seasons, the former Holiday Inn on Pearse Street is a three star, mass market venue.
Sellers hope offers for the Pearse Street hotel will be boosted because it is a freehold property and is immediately available, with vacant possession, for any new owner.
The business is expected to make a profit this year for the first time since 2008, they said.
The hotel location is close to the city centre and to modern office and leisure developments along the Dublin docks area which should boost interest.
The hotel lost its Holiday Inn tag after receivers were appointed but the agents handling the sale say that the global hotel brand was ready to sign a new franchise agreement once a buyer for the hotel was found.