€87m price tag for Gibson Hotel in Dublin's Docklands
The four-star Gibson Hotel in Dublin's Docklands has been put up for sale with a guide price of more than €87m.
Built by developer Harry Crosbie during the boom, the 252-bedroom property has been brought to the market by international real estate advisers, Savills, on the instruction of joint receivers Paul McCann and Stephen Tennant of Grant Thornton.
Designed by leading architects Scott Tallon Walker, and completed in 2010, the hotel is widely considered as a landmark investment opportunity because of its location at the heart of the capital's booming docklands area.
Apart from its 252 bedrooms, the hotel boasts the 120-cover 'Coda Eatery' restaurant, two bars, including the contemporary Hemi Bar, spa facilities and a gym.
The hotel's conference and banqueting facilities consist of nine rooms over two floors, capable of accommodating up to 300 delegates. The hotel also has an 800-space basement car park.
The Point Square hotel sits opposite the 3 Arena, Ireland's largest indoor entertainment venue. As another brainchild of Harry Crosbie, the arena served as a strong influence for the musical theme of the hotel during its design and construction phase.
Named after the famous Gibson guitar, the hotel is fully let to Galsay, a subsidiary of Ireland's largest hotel operator Dalata, under a 25-year lease from June 28, 2010. Expiring in 2035, the lease offers an unexpired term of 17.8 years. The current passing rent is €4.65m and is subject to five yearly upward-only rent reviews.
The Gibson Hotel's guide price of €87m reflects a net initial yield of 5.12pc.
"The Gibson offers investors the opportunity to acquire a rare hotel investment of scale with long-term, secure income in a prime location," said Savills director of investments, Fergus O'Farrell.
"It will attract interest from a wide spectrum of investors looking for secure cash flow and the opportunity to benefit from the continued performance of the Irish economy - in particular the Irish hotel and tourism industry."
In a separate development, the private equity-backed property investment vehicle Sw3 Capital is reported to be close to a deal with Nama for the adjacent and as-yet unbuilt Exo Building.
The 73m building is earmarked for construction on the site of Mr Crosbie's ill-fated Watchtower development, and when completed, is set to be the tallest office block in Dublin.