Dublin Docklands hotel on the market for €87m

Let to Galsay, a subsidiary of Irish hotel group Dalata, the Gibson Hotel opened in 2010 and has an unexpired lease term of 17.8 years. Located on the North Docklands in Dublin’s Central Business District (CBD), it occupies an area known as Point Square.

'The Gibson offers investors the opportunity to acquire a rare hotel investment of scale with long term secure income in a prime location,' commented Fergus O’Farrell, director of investments at Savills. 'It will attract interest from a wide spectrum of investors looking for secure cash flow and the opportunity to benefit from the continued performance of the Irish economy, in particular the Irish hotel and tourism industry.'

Named after the famous Gibson guitar, the 4-star hotel comprises 252 bedrooms, including 20 suites. Public spaces include a 120 cover restaurant, two bars, spa facilities and a gymnasium, plus nine rooms of conference and banqueting facilities. The overall scheme benefits from an 800 space basement car park.

Built by property developer Harry Crosbie, it was taken over by Irish bad bank NAMA in 2013 alongside a number of other assets. Grant Thornton was appointed as receiver.

According to Savills, the Dublin hotel market operated at 83% occupancy in 2016, and RevPAR grew by 15% in the same period with a further 7% growth forecast for 2017. This and the hotel’s prime location within the developing Docklands support significant rental growth potential.

'The underlying Dublin hotel market has enjoyed a period of sustained growth due to an improved wider economy, increase in visitor numbers and a growing corporate occupier market. Dublin is a sought after leisure destination with an ever increasing number of events. The Gibson Hotel is exceptionally well positioned to capitalise on expected further growth in the coming years,' concluded Tom Barrett, Savills' director of hotels & leisure.

Joint receivers Paul McCann and Stephen Tennant instructed Savills.