The five-star Shelbourne Hotel on Stephen’s Green in Dublin grew its revenue by more than a third in the first six months of 2023 on the back of increased travel to Dublin and higher room rates.
US investment fund Kennedy Wilson spent $152 million (€138 million) in early 2014 to take control of the Shelbourne by acquiring debts tied to the hotel from Irish Bank Resolution Corp, formerly Anglo Irish Bank.
Details of the hotel’s performance this year are contained within Kennedy Wilson’s quarterly results for three months ended June 30th, which were published by the company on Friday.
The filing shows the Shelbourne, which has 265 hotel rooms, generated an income of $26.1 million in the first six months of the year, compared with $19.2 million for the same period in 2022.
The $6.9 million increase was primarily attributed to increased travel to Dublin after the pandemic subsided, which led to higher occupancy and room rates. There were expenses of $17.6 million in the six months, up from $11.9 million the year before. The hotel’s average daily room rate increased more than 20 per cent on an annual basis in the first three months of the year. Its average daily rate was $428.80 in the first quarter of the year, compared with $354.30 in the same period of 2022.
Famous guests at the Shelbourne down the years include Hollywood stars Greta Garbo, John Wayne, Rita Hayworth, Elizabeth Taylor, Paul Newman and Robert Redford.
John F Kennedy stayed there during an official visit in June 1963 as president of the United States. Princess Grace and Prince Rainier of Monaco were also frequent guests.
Kennedy Wilson’s results show the hotel’s performance picked up in the second quarter during which it generated $15.5 million in income compared with $12.7 million for the same period in 2022.
Hotel expenses increased to $9.7 million for the three months compared with $7.6 million for the same period of 2022, primarily due to increased level of activity at the hotel.
Kennedy Wilson’s annual report last year suggested the hotel’s valuation has increased by a quarter to €236 million. It has spent about €36 million on refurbishment works since it acquired the property.
The California-based group was one of the first major overseas buyers of property assets following the financial crash more than a decade ago. It invested heavily in Ireland and now controls offices and apartments as well as the hotel.
Most of its operations are focused on Dublin and the surrounding area. Overall, Ireland accounts for about 19 per cent of Kennedy Wilson’s estimated annual net operating income, which is up from 16 per cent last year.
The group has $594.1 million in joint ventures in the Republic, which is up from $562.8 million last year.
It increased its investment in multi-family assets from $378.1 million to $397.6 million, as well as its investment in commercial assets from $176.7 million to $190.2 million.
The Republic accounts for almost 26 per cent of the group’s total investments in joint ventures, which is up marginally on the year before.
Mortgage debt secured by Kennedy Wilson’s consolidated properties as of June 30th was $378.2 million, which was up from $370.7 million at the turn of the year.
