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Published in Commercial Property on 30/08/2017

Gibson Hotel Investment on the Market for €87m

#savills

CNI Editor reports

In one of the year’s most significant investment sales, international real estate advisor Savills, on the instruction of joint receivers Paul McCann and Stephen Tennant, is offering The Gibson Hotel to the market today guiding in excess of €87m, which reflects a net initial yield of 5.12%.

The Gibson Hotel is a landmark investment opportunity in a prime location in Dublin’s North Docklands. Designed by leading architects Scott Tallon Walker, and completed in 2010, the property is finished to the highest specification.

Named after the famous Gibson guitar, the Gibson Hotel is a superior 4-star hotel comprising 252 bedrooms, including 20 suites. It features generous public spaces including a 120 cover restaurant (Coda Eatery), two bars including the contemporary Hemi Bar, spa facilities and a gymnasium. The hotel’s conference and banqueting facilities consist of 9 rooms over two floors, capable of accommodating up to 300 delegates. The overall scheme benefits from an 800 space basement carpark.

The property is fully let to Galsay Limited, a subsidiary of Dalata plc, under a 25 year lease from 28th June 2010. Expiring in 2035, the property offers a very attractive unexpired term of 17.8 years. The current passing rent is €4.65 million and is subject to five yearly upward-only rent reviews.

Located on the North Docklands in Dublin’s Central Business Disctrict (CBD), The Gibson Hotel occupies an area known as Point Square. Opposite the hotel is the 3 Arena, Ireland’s largest indoor entertainment venue, which was a strong influence for the musical theme of the hotel during its design and construction phase. On the hotel’s doorstep is the Luas Red Line which provides excellent connectivity to the rest of Dublin City and beyond.

Other neighbours include major global businesses such as Accenture, AirBnB, Facebook, Google and Citibank, all of  which operate their EU headquarters within close walking distance of the hotel. In addition, major sporting, conference and entertainment venues are located close-by, such as The Convention Centre Dublin, Bord Gáis Energy Theatre, Aviva Stadium and Croke Park, making the hotel an ideal choice for both business and leisure travelers.

The Gibson Hotel is the only Dalata hotel (owned / leased) with a unique branding outside of their Maldron and Clayton brands, highlighting its unique character and superior reputation. 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.

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