The profitable Pearse Hotel on Pearse Street in Dublin 2 is to be offered for sale at about €9 million.
Dermot Curtin of CBRE is handling the sale for David Hughes and Luke Charleton of EY, who were appointed receivers to Johnny Moran's Citywide Leisure Ltd. Funding for the hotel had been provided by the former Anglo Irish Bank.
The Pearse comes on the market only months after another hotel on Pearse Street, the Trinity Plaza, was bought by US billionaire John Moran for almost €35 million. A third hotel in the area, the Westin on Westmoreland Street, is due to be offered for sale soon at more than €50 million.
In addition to the Pearse Hotel, CBRE is handling the sale of two adjoining commercial property investments, which are expected to fetch about €1.55 million.
The Pearse Hotel traded up to 2011 as the Holiday Inn, when its profits generally ranged between €1.3 million and €1.5 million per annum.
Strategic location
It is still trading exceptionally well, due in part to the buoyant hotel market but more particularly because of its strategic location. While it is close to the city centre, it is also near the Bord Gáis Energy Theatre, the O2, the Aviva Stadium, the Convention Centre, and Irish and international companies trading out of the south docklands.
Dublin’s hotel market was the best performing in Europe after London last year and according to a PwC forecast it is likely to retain that position this year.
Additional floors
A recent study has shown that the 101 bedrooms in the Pearse could be increased to 170 by adding two floors. Discussions on the project were held with city planners but a formal planning application was delayed when it seemed inevitable that receivers would be appointed.
The hotel has a bar and restaurant, five meeting rooms, a private gym for guests and 20 basement parking spaces, which are leased in. Double- room rates are €79 per night.
The sale also includes two adjoining commercial units extending to more than 392sq m (4,228sq ft), which are producing a rental income of €102,500 per annum.
Numbers 97 and 98 Pearse Street are let to Centra on a 25-year lease from 2005 at €60,000 per annum. Number 95 Pearse Street is rented by Boylesports on a 25-year lease from 1997 at €42,500 per annum. There are two vacant offices over Boylesports.
