Hotel site ready to go in Dublin city centre for €5m
A number of prospective buyers from Ireland and from overseas are expected to run the rule over the former premises of Dublin 'superpub' Zanzibar, which has just been brought to the market.
CBRE Hotels is seeking offers in excess of €5m for the property, which has full planning permission for the development of an 89-bedroom hotel.
With revenue per available room (RevPar) in Dublin now outstripping the rest of Europe, with growth of 21pc recorded in the seven months to July alone, the availability of such an extensive hotel development site in the heart of Dublin city centre represents "a unique opportunity" according to John Ryan of CBRE Hotels.
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 of retained protected structures.
There are four floors of bedrooms, the majority of which are in the new extension to the rear and they each extend to approximately 23 sq m. There are also extensive food and beverage facilities. The permission also allows for the creation of a new walkway linking Ormond Quay to Great Strand Street.
Previously a venue within Liam and Des O'Dwyer's Capital Bars Group, Zanzibar opened for business in 1998 just as the Celtic Tiger was taking off. Created off the back of a €3.81m budget, it boasted a capacity of 1,200 and was part of the O'Dwyers' stable of superpubs, alongside Café en Seine, Major Toms and Bad Bobs.
The expected buyer interest in the sale of the Zanzibar premises isn't unusual when viewed within the context of the overall levels of activity in the Dublin hotel market. Indeed, some €420m in hotel sales in the capital are expected to close by the end of this year.
The sale of the Gresham Hotel to Spanish group Riu Hotels & Resorts for more than €90m is expected to close shortly.
And yesterday the Dalata Hotel Group announced that it had entered into talks to acquire the leasehold interest of the DoubleTree Hilton Hotel in Dublin 4 with another unnamed party, which is negotiating the purchase of the property.
The hotel, formerly known as the Burlington, is being sold by US private equity giant Blackstone in a deal likely to achieve some €180m. Blackstone bought the hotel in 2012 for €67m and is understood to have spent €20m refurbishing it.
Elsewhere, FBD Hotels & Resorts has announced its intention to carry out a €7m expansion at Castleknock Hotel & Country Club. The development will see the hotel extended by 21,280 sq ft, with the addition of 43 rooms and three suites bringing its room capacity to 190.