Hotel in Temple Bar for €10.7m

16 May 2018

The Dublin Citi Hotel in Temple Bar, Dublin’s world-renowned entertainment district has been brought to the market today by Savills Ireland.

The real estate advisor is seeking investors for the boutique 27-bedroom hotel and bar at a guiding price of €10.7m. The property will benefit from a new 25 year lease with a rent of €660k per annum.

The hotel consists of two exquisite buildings fronting onto Dame Street, built in 1868 and 1910 that feature ornate brick walls and polished red granite. Both buildings were originally built as offices, until 1996 when the property was converted to a hotel and bar.

Dublin Citi Hotel is located on a high-profile corner site overlooking Dame Street in prime Dublin 2, at the entrance to Temple Bar. This famous district features untouched cobbled streets and alleyways converging in a public square with a variety of boutique retail outlets, restaurants, cafes, art galleries, and theatres. Temple Bar by night is a must do for locals and visitors to the city alike. Dublin Citi Hotel is strategically located as a starting or finishing point to enjoy the many pubs and clubs in the area.

The Dame Street and Temple Bar area continue to develop, with plans to pedestrianize a section of Dame Street adjacent the Dublin Citi Hotel. Dublin’s most high-profile development is already under construction next door at the former Central Bank. The new “Central Plaza” when completed in 2020 will add 12,000 sq.m of office and retail space with a signature 300-seat panoramic roof top restaurant, bar and viewing deck. This will further enhance the already exceptional footfall on the hotels doorstep.

The property is near Trinity College, the Olympia Theatre, Grafton Street, Dublin Castle and many thriving social quarters such as South William Street, Dawson Street and Dame Street Itself.

Accessibility is unbeatable with the recently opened Cross-City Luas Line and multiple bus routes that serve the entire city. Dame Street affords easy access to many of the city’s landmark destinations, such as, Christ Church Cathedral, O'Connell Street and the Guinness Storehouse.

The hotel market remains buoyant due to continued growth in visitor numbers in particular from Europe, the US and Canada. Hotel Investments are sought after in continental Europe and the UK. However, Irish hotel investment product, particularly in such a prime Dublin location is scarce.

Aaron Spring, Associate Director of Hotels & Leisure at Savills Commented:

“Investors are capturing strong rental income underpinned by experienced operators, and the opportunity to own a strategic piece of Dublin’s streetscape”

At the Guide price of €10.7m, the property provides investors with a Net Initial Yield of 5.69% after standard  purchasers cost of 8.46%. However, there may be potential to achieve vacant possession subject to agreement.

 
 

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Camilla Corry

Camilla Corry

Communications Coordinator
Central Management

Dublin Commercial

+353 (0) 1 618 1775

 

Andrew Smyth

Andrew Smyth

Divisional Director - Head of Marketing & Communications
PR & Internal Communications

Dublin Commercial

+353 (0) 1 618 1479