With Irish hotel activity now back to over 80% of pre-Covid levels, the sale of the Wellington Hotel in Dublin city center is expected to attract strong interest from a range of investors and owner-operators.
Located in the heart of the city’s Temple Bar district, The Wellington briefly comprises a new 38-room hotel complemented by extensive bar and restaurant facilities spanning 340 square meters (3,660 square feet). The property is offered to the market by CBRE at an indicative price of 18 million euros. Although this figure equates to €473,684 per key, which is well above the average of €300,000 per key paid for all hotel sales in Dublin in 2021, the premium can be explained by the relative scarcity of hotel rooms in the Temple Bar area (less than 1,000) and the ongoing recovery of the tourism sector.
Figures released this week by travel industry analyst STR show that in the 28 days to April 11, Irish hotel room occupancy levels reached 81.3% of their number. before the pandemic. This ranked the Republic third in Europe, behind the UK, which had 87% of 2019 levels, and Poland, which was at 84.5%.
In addition to offering its buyer the opportunity to secure ownership of a new, unbranded hotel in a proven downtown location, the sale of the Wellington will provide the new owner with the opportunity to generate significant revenue through its bar and restaurant facilities to customers and other visitors.
Situated in a very prominent location, overlooking the River Liffey, the hotel is located in the center of Dublin’s main business and shopping districts and within walking distance of the city’s most popular tourist areas including Trinity College, City Hall, Christchurch, the Guinness Storehouse, the GPO, St Stephen’s Green and Grafton Street. The property in question is well served by public transport including the Luas, Dart, mainline rail lines and many of Dublin’s bus routes.
Paul Collins, Executive Director of CBRE’s Hotel and Licensed Division, said: “The sale of the Wellington Hotel offers investors a superb opportunity to acquire a newly built 38-bedroom hotel in the heart of the famous Temple Bar district. Unbranded Dublin city center hotels rarely come to market and this property offers buyers the opportunity to establish and grow their business in one of Dublin’s most desirable locations.