Zanzibar Hotel at €5m sees Tetrarch interest
With tomorrow's deadline for initial bids on the Zanzibar Hotel development on Dublin's Ormond Quay looming, expectations are growing that the €5m price quoted by CBRE could be exceeded by up to 20pc - or €1m.
Speculation that the property, which has full planning permission for the development of an 89-bedroom hotel, could yet achieve up to €6m is being driven by the sheer level of interest shown by hotel operators and investors from Ireland, the UK, Europe and China.
With well over 100 expressions of interest received, more than 80 copies of the hotel's information memorandum distributed and upwards of 40 site visits conducted by individual parties as of yesterday, the property is expected to attract a number of serious bidders.
It is anticipated that several Irish hotel operators who have been particularly active in the domestic market will be among those submitting offers for the hotel, which prior to its closure operated as a venue within Liam and Des O'Dwyer's Capital Bars Group.
Sources familiar with the matter said they expected interest to come from Tetrarch, Dalata and the McGettigan Hotel Group, among others.
In the case of Tetrarch, its interest in pursuing opportunities in the area immediately north of the River Liffey is well-established with its proposed development of a 158-bedroom boutique hotel at Sackville House near O'Connell Street.
In terms of international interest, the Irish Independent understands the Zanzibar Hotel has attracted the attention of a number of hotel operators, which heretofore have not looked at the Irish market.
Located at numbers 34 to 37 Ormond Quay and overlooking the River Liffey and Ha'penny Bridge, the property's current planning permission provides for the conversion of two protected structures and the provision of an 89-bedroom hotel totalling 7,077 sq m, - of which 5,494 sq m is new build and 1,583 sq m is retained protected structures.
There are four floors of bedrooms, the majority of which are in the extension to the rear. They each extend to approximately 23 sq m.
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, alongside Café en Seine, Major Toms and Bad Bobs.