|A rare cloudless sky over Upper Leeson Street, Dublin.
CBRE Hotels Dublin, a unit of CB Richard Ellis,
announced today that one of "Dublin’s best known and most important hotels." The
sale of the Burlington Hotel is on behalf of Paul McCann of Grant Thornton, who
is the receiver of Burhotel Trading Company Limited. Bernard McNamara, the
bankrupt developer, paid €288m for the hotel in 2007, which he had planned to
demolish. The guide price is €65m to €75m
The 4 star Burlington Hotel is said to be one of
Europe’s biggest city centre hotels -- and is by far Dublin’s largest
hotel with 501 bedrooms. It occupies a 3.8 acre / 1.54 ha site in Dublin 4, "the
city’s most sought after address - - boasts the widest range of conference
and event facilities in Dublin and has the busiest hotel banqueting and
conference business in Ireland."
CBRE says that the strong recovery of the Dublin
hotel market has been quite remarkable since late 2010 and the strength of the
resurgence is reflected in the performance statistics for Dublin Hotels, which
have been amongst the best in Europe for almost two years now. Smith Travel
Research (STR Global) who monitor hotel performance in major cities across the
world on a daily basis, show that bedroom occupancy in Dublin has consistently
been in positive territory since September 2010 and, more impressively, RevPar
(Revenue Per available room) has shown positive growth for each of the last 23
consecutive months, up to and including July 2012. The STR monthly stats are the
“bible” for most hoteliers, hotel owners and investors across the world and
occupancy and RevPar are amongst the most important KPI’s (key performance
indicators) hotel owners and purchasers use when assessing their interest in any
particular hotel. "As these STR statistics clearly demonstrate, Dublin hotels
have been amongst the very best performing hotels in Europe this year."
The agents say the hotel ranks as the most profitable hotel in Ireland. It has
benefited from substantial capital expenditure since reopening in May 2008 and
recently completed a major upgrade of its fire and safety facilities at a cost
of approximately €1.2m. With further strategic investment the Burlington Hotel
has the potential to significantly grow its revenues and profitability into the
Commenting on the sales process Paul Collins of CBRE Hotels said that this
weekend alone the hotel will accommodate almost 1,000 overnight guests for next
weekend’s much hyped US College Football game between Notre Dame and Navy, an
event which is bringing 35,000 American tourists to Dublin. “The Burlington
Hotel currently achieves a substantial level of business without the benefit of
an international brand name over its door and its sale offers savvy hotel
investors an outstanding commercial opportunity to flag Dublin city centre’s
largest hotel with an international brand. There is an opportunity to bring in
the support of a world recognised international brand that can bring trading at
the Burlington to another level altogether and add significantly to the future
investment value of the hotel. With property values in Dublin bottoming out but
at their lowest level ever, there has never been a better time to invest in one
of Europe’s most buoyant hotel markets”.
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