Dalata To Take Over Pearse Hotel
Published on May 20 2014 9:36 AM in Hotel
The Irish hotel operator Dalata is set to purchase the Pearse Hotel after raising €265 million from listing its shares on the Dublin and London Stock Exchanges. The company is due to pay at least €13 million for the profitable Dublin hotel and two adjoining commercial investments, which are producing a rental income of €102,500 per year. CBRE is managing the sale on behalf of David Hughes and Luke Charleton of Ernst & Young. CBRE had initially asked for €9 million for the hotel and €1.55 million for the investment properties, but did considerably better because of the amount of bidding from Irish and overseas investors. The sale attracted a lot of attention because of its strong trading record (its profits generally range between €1.3 million and €1.5 million), and its nearness to the city centre. The hotel's value is bolstered also by its close proximity to the Bord Gáis Energy Theatre, the 02 Arena, the Aviva Stadium, the Convention Centre, and a number of international IT companies based in the South Dublin docklands, such as Google and Facebook. The sale was encouraged by a recent study that has shown that the 101 bedrooms in the Pearse Hotel could be increased to 170 by the installation of an additional two floors. Dublin’s hotel market has experienced a significant recovery over the past year as a result of a jump in overseas visitor numbers, and greater domestic confidence. Room rates however are still 20% below their 2006 level.