With hotel room rates rising and tourism booming, there should be keen interest in a mid-sized hotel on Upper O’Connell Street which is fresh to the investment market this week with CBRE guiding €4 million.

Lynam's Hotel, which has been closed for two months and was the subject of a High Court case with a previous tenant to get vacant possession, is located in a former period bank building opposite the Spire. It has 42 bedrooms, 1,280sq m (13,800sq ft) of space and a ground floor self-contained cafe/restaurant which offers "asset-management opportunities".

The four-storey-over-basement building was redeveloped as a hotel which opened in 2001. It fronts O'Connell Street with rear access for deliveries from Henry Place.

This part of the capital is undergoing considerable redevelopment with the Luas cross-city line to open in 2017 and a 198-bedroom Holiday Inn Express hotel nearing completion at the corner of O'Connell and Cathal Brugha streets.

Former Clerys building

There is also a planning application before Dublin City Council to convert the former Clerys store into a hotel, shops, offices and bars , and to add a new level to the building on O'Connell Street.

The hotel is being sold on the instructions of Aiden Murphy of Crowe Horwath, who was appointed receiver by Nama over certain assets of Martin Flattery and Paul Tiernan.

Lynam’s hit the headlines earlier this year when a number of homeless families, who were living in the hotel as emergency accommodation, feared eviction should it be handed over to a receiver. Dublin City Council subsequently found accommodation for them and, despite subsequent reports that the hotel could become a dedicated accommodation facility for the homeless, it is to be sold on the open market.

The sale excludes the Spar shop, which is separately owned and not involved in or impacted by the hotel receivership process.