Dublin and Galway hostel portfolio guiding at €11m
John Hughes of CBRE's hotel division is offering a portfolio comprising two of Dublin and Galway's foremost hostels to the market in one or more lots. The sale of the Barnacles hostel business is expected to attract significant interest, both from existing operators and potential entrants to the tourism industry.
Barnacles Hostel Dublin is superbly located in the heart of Temple Bar, adjacent 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.
Barnacles Hostel Galway is a multi-faceted business comprising hostel properties, convenience shop and restaurant investment property. All are centrally located on Quay Street, in the heart of 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.
An adjoining restaurant investment property - Trattoria Restaurant - is available as a separate lot through joint agent O'Donnellan & Joyce. The restaurant comprises a ground floor open-plan area, kitchen, toilets and ancillary stores and extends to 130 sq m (1,199 sq ft). The restaurant has traded as a highly successful and popular venue. The restaurant is held on a 35-year lease from 1994 at a current rent of €73,200 a year. The next rent review is 2019. The tenant of the restaurant investment property is not affected by the sale.
The four properties within the Barnacles portfolio are for sale in one or more lots, as follows:
Lot 1: The Entire - offers in excess of €11m.
Lot 2: Barnacles Hostel Dublin - offers in excess of €6.5m.
Lot 3: Barnacles Hostel Galway including the restaurant investment property (tenant not affected) - offers in excess of €4.7m.
Lot 3A: Barnacles Hostel Galway, excluding the restaurant investment - offers in excess of €3.4m.
Lot 3B: Restaurant investment - offers in excess of €1.35m.
John Hughes of CBRE says: "The sale of Barnacles Hostel Dublin and Barnacles Hostel Galway is likely to appeal to many hostel operators and investors as they are being offered for sale in various lots, unencumbered of brand or third-party management agreements, providing intending purchasers complete flexibility. Both properties are presented in 'turn-key' condition, with no substantial capital expenditure required."