Investors looking to take advantage of the strong and sustained demand for hotel accommodation in Dublin’s city centre will be interested in the sale of the newly opened REZz “micro-budget” hotel. Located in the Hely Building, a converted, historic telephone exchange on Dame Lane, and within a short walk of Grafton Street, the 51-bedroom property is being offered to the market as an investment sale on behalf of the building’s owner, Eir, by agent JLL at a guide price of €10 million.
The REZz Dublin, as it is known, is one of two new hotels created, owned and operated by Ray Byrne and his business partner Eoin Doyle in Dublin and Cork respectively. Byrne is arguably best-known as the owner along with his wife, Jane, of Wineport Lodge in Co Westmeath. Doyle, meanwhile, is co-owner of both the Brooklodge Hotel and Macreddin Village in Co Wicklow and the Eccles Hotel in West Cork.
The combination of Byrne and Doyle’s proven track record as hotel operators, the 90-year lease entered into by the REZz brand and the property’s €650,000 annual rent roll is expected to see significant interest from both Irish and international investors. Should a sale proceed at the €10 million price being guided by agent JLL, the buyer stands to secure an attractive net initial yield of 6 per cent.
The REZz Dublin briefly comprises 51 guest bedrooms, with 30 per cent of these laid out as triple bedrooms furnished with a double and a single bed. The ground floor is home to the Dis n Dat bar, while the hotel is located near a number of popular eateries including the Bestseller Café and Keoghs Café. The building is 200 metres south of the Temple Bar district and 400 metres west of Grafton Street.
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The accommodation at the hotel comes in two sizes, according to REZz’s website. Describing the rooms’ size and fit-out, it states: “Original features mix with raw industrial finishes and REZz trademark graphic walls. Big windows and high ceilings give rooms a sense of space, even though we proudly call them small. They come in two sizes – ‘Just right’ and ‘Let’s Share’ – always with prices that never pack a punch.”
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Commenting on the sale of REZz Dublin, Isobel Horan, senior vice-president of JLL’s hotel and hospitality division, says: “REZz is Dublin’s newest micro-budget hotel in the centre of Dublin’s nightlife hub. After a very busy summer, Dublin’s hotel market is trading strongly, and we expect there to be high demand for this rare and long-let hotel investment.”
