Deka Immobilien rumored to have purchased Dublin's Gibson Hotel

The Gibson Hotel, which is on sale for over €87 million, is expected to attract considerable interest in investment.
The Gibson Hotel, Dublin, Ireland

German real estate firm Deka Immobilien is rumored to be the new owners of the Gibson Hotel in Dublin's docklands, which has been priced at €87 million. Savills is selling the property on behalf of receivers Paul McCann and Stephen Tennant of Grant Thornton.

Opened in 2010, the 252-guestroom Gibson Hotel, which was designed by Scott Tallon Walker, was originally owned by Choice Hotels. However, the property is currently being leased by a Dalata Hotel Group subsidiary, which acquired stock in the property last year. 

The Gibson's sales brochure states that the expected rent for 2017 is €4.65 million. The expected rent total is made up of the base rent of €2.93 million per year and the variable rent, which is linked to turnover and predicted to be €1.72 million this year. The lease of the Gibson Hotel runs for a 17.8-year term. 

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Deka also owns the former Burlington Hotel in Dublin, which is operated by Dalata under its Clayton brand as part of a 25-year management contract. Dalata's transaction consideration from acquiring its operating stock in the hotel was €2.5 million. In 2016, Deka purchased the Burlington Hotel from U.S. investment firm Blackstone for €180 million. 

This past August, the group partnered with Dalata again as the two groups signed a sale-leaseback deal on the Hotel La Tour in Birmingham for €33 million. Dalata is set to operate the hotel on a new 35-year lease for approximately €1.8 million per year. The rent of the property is subject to five yearly reviews, which are index-linked to the retail price index.

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