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Temple Bar Dublin hotel hits market

By James Wallace - Wednesday, May 16, 2018 8:26

The Dublin Citi Hotel in Temple Bar has been brought to the market by Savills Ireland with a guide price of €10.7m.

The 27-bedroom hotel benefits from a new 25-year lease with a rent of €660,000 per annum. At the guide price of €10.7m, the property provides investors with a net initial yield of 5.69%, after purchasers’ cost of 8.46%. However, there may be potential to achieve vacant possession subject to agreement.

The hotel market remains buoyant due to continued growth in visitor numbers in particular from Europe, the US and Canada. Hotel investments are sought after in continental Europe and the UK.

Aaron Spring, associate director of hotels and leisure at Savills, said: “Investors are capturing strong rental income underpinned by experienced operators, and the opportunity to own a strategic piece of Dublin’s streetscape.”

The hotel comprises two exquisite fronting onto Dame Street, built in 1868 and 1910 that feature ornate brick walls and polished red granite. Both buildings were originally built as offices, until 1996 when the property was converted to a hotel and bar. Dublin Citi Hotel is located on a corner site overlooking Dame Street in prime Dublin 2, at the entrance to Temple Bar. This famous district features untouched cobbled streets and alleyways converging in a public square with a variety of boutique retail outlets, restaurants, cafes, art galleries, and theatres.

James Wallace is a freelance consultant and can be reached via Linkedin or email: jawallace32@gmail.com

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