Ireland’s tallest hotel has been put up for sale by its receiver, being sold as an investment with an asking price of €3.5m. It is being sold by private treaty with existing occupational leases providing current rental income of €200,000 per annum. The hotel, which opened in 2002, is located in a prime position on the banks of the river Shannon in Limerick city, the capital of Ireland’s south west region and close to Shannon International Airport providing US flight pre-clearance.
Tall buildings are relatively rare in Ireland, which means that this hotel contains a lot of rooms for its footprint by Irish standards. There are 158 air conditioned bedrooms arranged over 17 floors, including three penthouse suites on the top two floors, with remarkable views Across Ireland’s longest river, the Shannon. The property includes a busy bar, highly regarded restaurant, extensive conference & banqueting facilities and a health and fitness club used by a number of Munster Rugby panelists and Limerick GAA county representatives.
The selling agent claims the property is experiencing strong growth in occupancy and average room rate, with both experiencing double digit growth in the year to date 2015.
The current tenant is unaffected by the sale. One rent review is outstanding from December 2014 with two others due in December 2017. All leases are Full Repairing and Insuring (FRI) with a weighted average unexpired lease term (WAULT) of 15.12 years. The hotel is operated under a highly recognisable four star international brand.
Limerick is a strong tourism and industry brand in Ireland. It is steeped in history and culture with popular visitor attractions such as King John’s Castle, the Hunt museum, the Frank McCourt museum and Thomond Park (home of Munster Rugby) which regularly hosts sporting events.
The hotel is just 27km from Shannon Airport which had a throughput of 1.6 million people in 2014, with this is expected to increase to 1.7m in 2015.