Limerick’s iconic Clarion Hotel, has been put on the market by receiver, Kieran Wallace of KPMG, with a guide price in excess of €3.5 million.
The 17 storey building, which is Ireland’s tallest hotel, is being offered for sale by private treaty with the benefit of existing occupational leases.
The landmark hotel – which opened in 2002 – occupies a prime waterfront position on the banks of the River Shannon, a short stroll from the city’s main shopping, entertainment and business districts. It features 158 air conditioned bedrooms including 3 penthouse suites and includes the popular Kudos Bar, Sinergie restaurant, extensive conference and banqueting facilities as well as the SanoVitae health and fitness club.
The Limerick city hotel market is witnessing strong growth in occupancy and average room rates, with both recording double digit growth in the year to date. The Clarion has a current rental income of €200,000 p.a. and the sale is subject to three existing occupational leases with Merzolt Limited. The tenant will be unaffected by the sale.
One rent review is outstanding from December 2014 with the other two due in December 2017. All leases are FRI with WAULT of 15.12 years. The hotel is operated by Choice Hotels Ireland under the four star Clarion brand. The property represents a very high quality leased hotel investment.
Commenting on the sale, Savills’ head of hotels and leisure, Tom Barrett said:
“This is a great opportunity to acquire the freehold interest subject to the existing occupational leases with Merzolt Ltd in one of Limericks finest hotels, occupying a prime waterfront position on the Shannon.”
