Savills is marketing the €10.7-million sale of the Dublin Citi Hotel in Dublin's Temple Bar.
The 27-room hotel is next to the former Central Bank building. The hotel's current tenants have a 25-year lease, paying €660,000 per year. The property will come with a sale-and-leaseback agreement and will be subject to five yearly rent reviews linked to the Consumer Price Index, according to The Irish Times.
According to Aaron Spring, associate of hotels and leisure at Savills Dublin, the new owner will gain a new initial yield of 5.69 percent after acquisitions costs of 8.46 percent. Spring, who is leading the sale, told The Irish Times that “there may be potential to achieve vacant possession, subject to agreement."
The hotel has two buildings, originally constructed in 1868 and 1910 for office use. The property was converted into a hotel in 1996.
Plans to also redevelop the Central Bank site into a mixed-use development have already been submitted. The building will share the site with new offices, retail space, a roof-top restaurant, bar and viewing deck. The Central Plaza project is scheduled to be complete in 2020.
This recent sale follows the announcement of the Tasburgh House Hotel sale in Bath, UK, according to a SouthWestBusiness report. Savills, who is also marketing this property on behalf of the owner, listed the 15-room hotel for more than £2 million. Queen Victoria's Royal Photographer constructed the hotel in 1891 near The Kennet & Avalon Canal and Bath's Heritage City Centre.
Before listing the hotel in Bath, Savills approved the sale of The Roxburghe hotel near Kelso, Scotland on behalf of the Roxburghe Estates to 12.18 Investment Management in early April 2018, according to Scottish Field. The new owner has already set plans to close the hotel and golf course to undergo £30 million in renovations. The 22-room 19th century hotel will reopen in 2019 as the Schloss Roxburghe. The group also plans to add 60 lodges on the surrounding property available for sale to private investors through a sale-and-lease-back deal.