Barnacles Dublin and Galway hostels sold for over €12m
Lally firm sells to Mm Capital and Burkeway Group
A company associated with well-known developer and hotelier John Lally is understood to have secured in excess of €12m from the sales of the Barnacles Hostel Dublin and the Barnacles Hostel Galway.
John Hughes of CBRE's hotel division confirmed the properties had been sold in individual transactions to Mm Capital and the Burkeway Group respectively.
Barnacles Hostel Dublin is well-located in the heart of Temple Bar, adjacent to the Temple Bar pub, the Temple Bar Music Centre and Meeting House Square. The property comprises 171 bed spaces with 35 rooms spread over three upper floors above a ground-floor reception.
The accommodation comprises a mix of bunk and single beds in private and shared rooms, all of which are en-suite. There are communal public areas including a communal kitchen and common 'chill-out' room.
The purchaser of the Dublin hostel, Mm Capital, is a real estate investment and development firm founded in 2013 by Peter Leonard and Derek Poppinga.
Barnacles Hostel Galway is a multi-faceted business comprising hostel properties, convenience shop and restaurant investment property. All are located on Quay Street, in the Latin Quarter of Galway city. The property comprises a total of 118 bed spaces, with the main four-storey building containing 112 bed spaces. There are six additional bed spaces located in two buildings, known as Kirwan's Lane Townhouse and Teach Ard, both of which are located to the rear of the property.
Also included in the Galway sale and fronting Quay Street is No 10, a busy and highly-profitable convenience shop, which forms an integral part of the hostel turnover. The shop benefits from all-day trade on the busiest pedestrian street in Galway, linking Eyre Square to the Spanish Arch area of the city.
The Galway hostel was purchased by a company associated with the Burkeway Group and the hostel is to be rebranded as Snoozles. The acquisition is an ideal addition to its growing hospitality business which includes Nox Hotel Headford Road and Snoozles Hostel Forster Street, Galway.
Burkeway Group director Diane Burke said "acquiring Snoozles formerly Barnacles) Quay Street is key to the growth strategy for our tourist offering in Galway city and increases our hostel capacity to over 250 bed spaces. Guests can expect the same quality and high standards as we offer at Snoozles Forster Street." In addition to its tourist business, Burkeway is one of Ireland's leading housebuilders.
John Hughes of CBRE's hotel division, who handled the sale of both assets, said: "The successful sale of Barnacles Hostels provided a superb opportunity to acquire a going-concern hostel business with the two properties occupying prime trading positions in the heart of Temple Bar in Dublin and Quay Street in Galway respectively."