One of Dublins' iconic north docklands hotels is on the market. The Gibson Hotel is now on sale and could reportedly bring in more than €87 million.
Grant Thornton's Paul McCann and Stephen Tennant are overseeing the hotel sale, which will be handled by Fergus O’Farrell and Tom Barrett of Savills. It is expected to attract considerable interest from Irish and overseas investors since hotel investments sales are very rare in Ireland's market, according to The Irish Times. O'Farell told The Irish Times that interest will mainly stem from investors looking for secure cash flow and the benefits of continued performance of Ireland's economy, specifically from the Irish hotel and tourism industry.
Barrett added that Dublin's hotel market also had experienced a successful period of continued growth thanks to an improved wider economy, rising visitor numbers and an expanding corporate occupier market. He added that The Gibson Hotel was very well positioned to capitalize on even more growth, which has been predicted in the coming years.
The 252-guestroom hotel is currently leased to Dalata subsidiary Galsay under a 25-year term that began in June 2010 and will expire in 2035. The rent of the hotel at €4.65 million is subject to five yearly upwards-only rent reviews. The hotel, which was named after the famous Gibson guitar and designed by Dublin architects Scott Tallon Walker, is the only Dalata hotel outside of the group's Maldron and Clayton brands. The hotel, which was developed by businessman Harry Crosbie, has traded successfully since its opening seven years at the Point Village next to a shopping center and offices.
The Gibson Hotel sale coincides with a significant increase in building activity on sites in the north docklands. It is one of the many businesses benefiting from the new Luas Red Line linking the docks area with the city center. These businesses include the Burlington Hotel, which German investment fund DekaBank recently acquired. The property will no longer be vacant now that the new owners have signed a lease agreement with Dalata when the purchase was finalized.