The Royal Irish Automobile Club and local investment group Tetrarch have abandoned a plan to develop their adjoining premises on Dawson Street and Anne’s Lane in Dublin due to a rise of €14 million in the construction bill and uncertainty over the future of tourism in the city.
The plan, first revealed in late 2017, involved the redevelopment of the buildings at 33-36 Dawson Street and several properties to the rear. It would have delivered a significant upgrade to facilities at the RIAC club at 33-34 Dawson Street, including a new members’ restaurant, bar, reading room, meeting rooms, offices for the RIAC and Motorsport Ireland, a new location for the Club’s Guinness Seagrave Library, and a 61-space car park.
It would also have allowed Tetrarch, via an entity called Miro Hotel 2 Ltd, to develop a new 117-bedroom hotel on the site.
Tourism outlook
Prior to Covid, the development budget was set at €26.5 million, excluding VAT, but inflation costs and delays due to the pandemic have pushed the bill up by 51 per cent to more than €40 million, with further increases expected.
In addition, the trading outlook for the hotel has been impacted by the changed travel and tourism environment caused by the impact of Covid-19, with uncertainty about the pace of that recovery in Dublin’s city centre, RIAC members have been told.
Two planning applications were lodged for the development, with permission for the scheme received by Miro from Dublin City Council in March 2020. The council had earlier raised concerns about the scheme.
The two parties had originally envisaged that the RIAC would vacate the club by the end of June 2019, with the redevelopment works to be completed within 24 months. It is not clear how much was spent on the plan to date but it would have been a significant cost.
Roof repairs
The decision to scrap the plan is a particular blow to the RIAC. An assessment of the condition of the RIAC buildings in advance of the venture with Tetrarch being announced had found evidence of dry rot, a need for roof repairs, and substantial movement in some walls.
The plan involved adding 77 new bedrooms to Tetrarch’s then Dawson Hotel, which comprised 36 bedrooms, a day spa, Sam’s Bar and the former La Stampa restaurant. It was to have been operated by Tetrarch with the RIAC brand in its name.
With the scheme at an end, the RIAC and Tetrarch will consider plans for the future of their buildings separately. The properties are situated directly opposite the Mansion House.
Tetrarch’s investment portfolio includes the Citywest Hotel in Saggart, the Mount Juliet estate in Kilkenny, and Howth Castle, where it recently lodged an application to redevelop the main house.
