In one of the more interesting recent moves in the Dublin hotel market, Clayton Hotel on Cardiff Lane in the capital's docklands is to sell 24 of its suites.
Savills Ireland's hotel division has put a guide price of €8 million on the suites, which equate to 62 bedrooms, each valued at €129,000, reports The Irish Times.
The area, off Sir John Rogerson’s Quay in Dublin 2, which is known as Silicon Docks, is a high profile location due to the presence of businesses such as Accenture, AirBnB, Facebook and Google. After the Clayton Hotel opened the location in 2005 with 213 bedrooms, it added further rooms in 2008, and it now has a capacity of 304 bedrooms.
There is a current annual rent of €467,200 for the suites, representing a net initial yield of 5.6%, which Savills describe as having a "very strong reversionary potential at the next rent review in January 2018".
Tom Barrett, Head of Hotels & Leisure at Savillsm commented: "This sale offers investors a rare opportunity to acquire a meaningful interest in one of Dublin’s most profitable hotels. There is significant office development in Dublin Docklands, with a current potential pipeline of over 400,000 square metres. The Clayton Hotel is located at the epicentre of this development and can be expected to be a long term beneficiary."
