'A magnificent investment opportunity' - Room in well-known hotel sold for more than €99k
A room in a popular Dublin hotel has gone sale agreed after being advertised for sale for €99,000.
The ad stated that room 215 in the Grand Canal Hotel, Dublin 4 was a “magnificent investment opportunity”.
“This ever popular location is ideally positioned in the leafy Ballsbridge with a vast array of amenities all within touching distance such as local shops, bars, restaurants, Aviva Stadium and IFSC name but a few,” the advert reads.
Some of the amenities listed include one ensuite bedroom and the fact there is no annual management charge.
The sale is being handled by Ray Cooke Auctioneers. Conor Clarke, who was handling the sale, said that hotel rooms for sale had not been a big feature of the Irish property market in recent years but he predicted it may increase going forward.
It is understood room 215 was sold from a private owner who previously purchased the room from the hoteliers.
"You're guaranteed rental income of around €7,000 per year, you don't have to deal with tenants, maintenance anything like that. The current hotelier there is McEniffs, who are very well established."
"It's just a straight-up investment, there's nothing more to it," he added.
"There was huge interest in it," he said.
The Grand Canal Hotel could not be reached for comment at the time of writing.
Purchasing individual hotel rooms has proven popular in countries across the world.
In Germany, you can buy a room in a 4-star hotel in Bavaria for about €58,000.
While in London, rooms are available to buy for as much as £135,000 (€158,506).
A spokesperson for Property Frontiers, a company which handles such sales globally, explains the appeal behind hotel room investment.
“With the global tourism industry recording 1 billion international travellers in 2012, there has never been a better time to consider a hotel room investment.
“Presenting strong double-digit returns, a defined exit strategy and often non-status finance, hotel room investments are some of our most popular opportunities with clients at home and abroad and provide the perfect asset class for a diverse portfolio.”
It is seen as a "hands off" investment, with the room being rented to hotel operators to be used as part of the hotel on a day-to-day basis, with the investor getting an annual rental fee.
The Grand Canal Hotel room will take in a gross rent of €6,800 per annum with an "upward only" rent review.
Available on a 35-year lease, that would see a return of circa €238,000.