There have been no fewer than 70 expressions of interest in the four-star Morrison Hotel at Ormond Quay in Dublin 1, which is being sold on behalf of Nama.
Selling agent CBRE Hotels is to invite formal bids within three weeks for the 141-bedroom hotel following the appointment of receivers to the business and property empire of one of its owners, Hugh O’Regan.
The selling agent is quoting €25 million for the hotel – half the valuation put on it in 2006 by its main banker, Anglo Irish Bank. The expectation is that it will make between €20m and €25m – equating to between €140,000 and €170,000 per bedroom. At the height of the market well-located four-star hotels in Dublin were valued at between €300,000 and €500,000 per bedroom key. This was still well short of the €700,000 per bedroom paid for the Shelbourne as part of the €132 million deal in 2005.
Hotel industry sources report that hotels in Dublin 1, 2 and 4 have had a significant recovery in business in 2011 because of an increased level of activities at the National Conference Centre, various sporting events and the visits of President Barack Obama and Queen Elizabeth. The Morrison has had a “highly profitable trading year”, according to one industry insider.
Most interest in the Morrison has come from the hotel industry in the UK and Europe, not only because of its modern condition (it opened in 1999) and strong location but also because it is unbranded, allowing new owners to trade under the existing name or link up with a top international brand.
More than 20 other hotels around the country which are under the control of Nama are to be offered for sale over the next few years.
Many of these are linked to property developers who had hoped to avail of tax breaks before the 2006 deadline.
