In one of the most unusual sales this year, five suites are to go on the market shortly at the Maldron Hotel Cardiff Lane on Sir John Rogerson's Quay in the south Dublin docklands.
Denis O’Donoghue of Savills is quoting €850,000 for the suites which are leased to the four-star hotel on individual leases with upward-only rent reviews.
There are 26 years remaining on each of the leases.
The current rent roll of €104,500 will give an investor a net initial yield of 12 per cent. The five suites have a total of 14 bedrooms, each of them with a floor area of 30sq m (323sq ft) and are fitted out to a high specification.
The hotel is run by Dalata Ltd, one of Ireland's largest hotel operators, which has an excellent covenant rating.
On a broader front, the Dublin hotel industry continues to experience strong growth in both occupancy and room rates.
The Maldron Hotel opened for business in 2005 with 214 bedrooms and because of its early success a further 90 bedrooms were added within three years. O’Donoghue said the planned sale was “something of a novelty” for investors to be able to purchase a high yielding part of one of Dublin’s most profitable hotels.
