THE four-star Clarion Hotel in Limerick - the country’s tallest hotel - is up for sale on the instructions of a receiver for €3.5m, it has been announced this Thursday morning.
Savills in Dublin is handling the sale on behalf of the receiver, Kieran Wallace of KPMG.
The hotel is being offered for sale by private treaty with the benefit of existing occupational leases.
The landmark hotel – which opened in 2002 at a cost of some €15m and designed by Murray O’Laoire Architects – features 158 bedrooms over 17 floors, including three penthouse suites.
“This is a great opportunity to acquire the freehold interest subject to the existing occupational leases with Merzolt Ltd in one of Limerick’s finest hotels, occupying a prime waterfront position on the Shannon,” said Tom Barrett, head of hotels & leisure at Savills.
The property includes the popular Kudos Bar, Sinergie restaurant, conference and banqueting facilities and the SanoVitae health and fitness club.
According to Savills, the Limerick city hotel market is witnessing strong growth in occupancy and average room rates, with both experiencing double digit growth in the year to date.
The Clarion Hotel Limerick has a current rental income of €200,000 per annum, 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 Clarion brand.