The south Dublin city center Burlington Hotel is set to sell for between $81 and $95 million (€65 and €75m). In 2007, property developer Bernard McNamara had bought the property for $360 million (€288m).
The landmark four-star hotel has 500 rooms and is located on 3.8 acres of land by the Grand Canal in Dublin 4. It is the second largest hotel in Ireland with conference and banqueting facilities.
Selling agents CBRE are overseeing its sale. Paul Collins, head of their hotels and licensed team, told the Evening Herald that international buyers are expected to take the lead in this sale. He expects potential buyers to come from the United States, the United Kingdom, and the Middle East.
Collin added that he would not be surprised if an international hotel brand was behind the next operators of the hotel.
He believes bids will be received in October or November and the new owners will be operating the hotel by Christmas.
Speaking to FinFacts, CBRE said, “The strong recovery of the Dublin hotel market has been quite remarkable since late 2010 and the strength of the resurgence is reflected in the performance statistics for Dublin Hotels, which have been amongst the best in Europe for almost two years now.”
It is believed that the hotel makes between $6.2 (€5) and $7.5 (€6) million per annum.
Collins told FinFacts, “The Burlington Hotel currently achieves a substantial level of business without the benefit of an international brand name over its door and its sale offers savvy hotel investors an outstanding commercial opportunity to flag Dublin city centre’s largest hotel with an international brand.
“There is an opportunity to bring in the support of a world recognized international brand that can bring trading at the Burlington to another level altogether and add significantly to the future investment value of the hotel. With property values in Dublin bottoming out but at their lowest level ever, there has never been a better time to invest in one of Europe’s most buoyant hotel markets.”
McNamara has been one of the biggest victims of the property crash. He has overall debts of $1.87 billion (1.5bn).
The hotel was put on the market by receiver Paul McCann, of the Grant Thornton accountancy firm.
Guinness is good for you, say medical experts