Monday 23 October 2017

Country's tallest hotel on the market guiding €3.5m

The Clarion Hotel in Limerick
The Clarion Hotel in Limerick
Peter Flanagan

Peter Flanagan

Savills has been appointed as exclusive selling agents for The Clarion Hotel Limerick on behalf of the receiver, Kieran Wallace of KPMG.

The hotel is on the block as an investment for €3.5m. it is being sold by private treaty with existing occupational leases.

The hotel, which opened in 2002, is the tallest hotel in Ireland.

It opened in 2002 and occupies what Savills call a "prime waterfront position on the banks of the River Shannon".

The hotel features 158 air conditioned bedrooms arranged over 17 floors, including three penthouse suites on the top two floors, with "stunning" views over the river Shannon. The property includes Kudos bar, Sinergie restaurant, extensive conference & banqueting facilities and SanoVitae health and fitness club.

"The Limerick city hotel market is witnessing strong growth in occupancy and average room rate, with both experiencing double digit growth in the year to date 2015. The Clarion Hotel Limerick has a current rental income of €200,000 per annum, and the sale is subject to three existing occupational leases with Merzolt Limited," said Savills.

The tenant will be unaffected by the sale. One rent review is outstanding from December 2014 with the other two due in December 2017. All leases are FRI with a waited average unexpired lease term of 15.12 years. The hotel is operated by Choice Hotels Ireland under the four star Clarion brand.

Limerick is home to a range of Industries such as ICT, financial and engineering/consumer products. The city is "steeped in history and culture with popular visitor attractions such as King John's Castle, Hunt museum or one of the many sporting events that Limerick has to offer". Limerick City is about 27km from Shannon Airport and 1.6 million people passed through the airport in 2014 and this is expected to increase to 1.7m for 2015, the firm noted.

Savills head of hotels and leisure Tom Barrett said the hotel was "a great opportunity to acquire the freehold interest subject to the existing occupational leases with Merzolt Ltd in one of Limerick's finest hotels, occupying a prime waterfront position on the Shannon"

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