Two highly successful hostels with a total of 289 bed spaces – Barnacles Hostel in Temple Bar, Dublin, and Barnacles Hostel at Quay Street, Galway – are expected to attract competitive bidding when they are offered for sale by private treaty through hotel property specialists CBRE.
The unusual portfolio, valued at more than €11 million, also includes a convenience shop and a leased restaurant in Galway city. The various assets are for sale in one or more lots.
The Dublin Barnacles Hostel, near Meeting House Square, has 171 bed spaces in 35 rooms spread over three upper floors. The accommodation comprises a mix of bunk and single beds in private and shared rooms, all of them with en suites. There are also communal public areas with kitchen and “chill out” rooms.
The Galway portfolio includes not only the hostel but also a convenience shop and a restaurant investment. The three properties are in the heart of the Latin Quarter, frequented by tourists all year round.
Galway is one of the most sought-after locations for budget accommodation. The business seems to prosper all year round, supported by many cultural, musical and sporting festivals. The city also has an important university and college student base during the winter.
The main four-storey building, in the busy Quay Street area, has 112 bed spaces. There are also six more beds in two buildings known as Kirwan's Lane townhouse and Teach Ard, both at the rear of the main building.
The portfolio also includes a busy and highly profitable convenience shop fronting Quay Street, which provides a major boost to the overall hostel turnover. The shop trades all day, facilitating the constant pedestrian flow between Eyre Square and Spanish Arch.
The adjoining restaurant investment, Trattoria Restaurant, is for sale as a separate lot through joint agent O’Donnellan & Joyce. The tenant of Trattoria Restaurant is not affected by the freehold sale of the 130sq m (1,400sq ft) premises, which produces an annual rental income of €73,200 per annum. The 35-year lease commenced in 1994 and the restaurant investment is now valued at more than €1.35 million.
John Hughes of CBRE Hotels said the two hostels were being offered for sale in turnkey condition with no substantial capital expenditure required. Both properties were in excellent decorative order throughout and the businesses were highly profitable with ever increasing revenues.
The properties are to be offered for sale as follows:
Lot 1: The entire portfolio – offers of more than €11 million
Lot 2: Barnacles Hostel, Dublin – offers of more than €6.5 million
Lot 3: Barnacles Hostel, Galway, including the restaurant investment – offers of more than €4.7 million
Lot 3a: Barnacles Hostel, Galway, excluding the restaurant investment – offers o f more than €3.4 million
Lot 3b: Galway restaurant investment – offers of more than €1.35 million
