Dublin Hotels That Fetched Record Price During Boom to Be Leased
Two Dublin hotels, which fetched 379 million euros ($488 million) in 2005 as part of a record property deal, were offered for lease by the banks that now control the buildings.
The Ballsbridge Hotel and the Clyde Court Hotel, bought by developer Sean Dunne during Ireland’s property boom, had an average occupancy rate of 90 percent last month, according to Savills Plc, the broker that’s marketing the properties. The hotels have a combined 577 rooms that cost an average of about 70 euros a night, Tom Barrett, head of Savills’ hotel and leisure unit in Ireland, said in an e-mail.
Dunne bought the Jurys Hotel and the Berkeley Court, as the Ballsbridge and the Clyde Court were known in 2005, from Jurys Doyle Hotel Group Plc. At the time, it was the most paid per acre for sites in Ireland. Dunne planned to build apartments, a shopping mall and a new hotel on the 6.8-acre (2.8-hectare) plot of land before the Irish real estate market’s collapse.
“Prospective operators would expect to generate profits of about 5 million euros a year from these hotels and will offer to pay a large majority of that in rent,” Barrett said.
The hotels, which are less than 500 meters (547 yards) from the stadium where Ireland’s rugby and soccer teams play, are being offered on a five-year lease starting in January, he said.
Royal Bank of Scotland Group Plc (RBS)’s Ulster Bank unit backed Dunne’s purchase of the sites in Dublin’s embassy district of Ballsbridge. The properties are about 2 kilometers (1.3 miles) from the Irish Parliament. The companies that own the hotels are now controlled by a group of banks, according to Barrett.
Dunne’s Irish mobile number didn’t connect yesterday and a U.S. number wasn’t answered.