The five-star Shelbourne Hotel in Dublin has been sold to European investor Archer Hotel Capital, which also owns the Conrad Hotel on the other side of St Stephen’s Green.
In a stock-market filing, Kennedy Wilson announced the sale of the Shelbourne, along with an office building in Washington and a retail asset in the UK for a combined $335 million (€311 million). The sales yielded a gain of $120 million for the company and cash proceeds of $238 million, after debt is repaid, the California-based company said.
The Shelbourne was for sale with a reported price tag of €260 million, with one source indicating that the sale was agreed for slightly under that level.
Originally established in 1824, the Shelbourne overlooks St Stephen’s Green and has 265 bedrooms, along with restaurants, bars and event facilities. The property is managed by Marriott International under a contract that runs to 2026.
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Commenting on the purchase, Dominic Seyrling, co-chief executive of Archer, said: “We are thrilled to add the Shelbourne Hotel to our collection of properties. This acquisition aligns perfectly with our commitment to investing in exceptional assets with enduring value. Archer is dedicated to preserving the Shelbourne Hotel’s legacy while enhancing its offering. Archer looks forward to writing the next chapter in the storied history of this beloved Dublin landmark.”
Archer was advised by Arthur Cox, Allen & Overy, Grant Thornton, TFT, WSP and Lockton. Third-party financing was provided by Deutsche Bank.
Archer is a specialist European hotel investment vehicle jointly owned by affiliates of APG Asset Management and GIC. It was established in 2018, has offices in Amsterdam and London, and has a portfolio in Europe comprising 13 hotels, with a combined near 4,000 bedrooms and a gross asset value of circa €2 billion, according to its website.
It acquired the five-star Conrad in 2019 and has since received planning permission to add a major extension to the property. Archer also has properties in Amsterdam, Barcelona, Brussels, London, Madrid, Paris and Stockholm.
Kennedy Wilson acquired the Shelbourne in 2014 via a prepack receivership. Ownership of the prized asset had switched from Jerry O’Reilly and John Sweeney, the remaining owners from a consortium that acquired the hotel in 2004. Other members of the consortium had included builder and developer Bernard McNamara. The sale price was in 2014 was reported at $152 million.
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