€30m Clarion on market as most valuable hotel outside Dublin

THE Clarion Hotel on Lapp’s Quay has hit the market with an asking price of €30 million.
The guide price has likely been influenced by growth in the docklands area, including the new One Albert Quay office block across the river, The Capitol on Grand Parade, as well as the new events centre further upstream.
The valuation makes it the most expensive hotel outside of Dublin, and similar to other Cork hotels like The Kingsley, interest is expected to come from overseas buyers.
With a high occupancy rate and profitable room rates, sellers say that the four-star hotel will give a return rate of 7.66% to investors if it reaches its guide price.
The hotel is operated by the Choice Hotels Group under the Clarion brand.
It is Cork’s largest hotel, with 191 bedrooms located over five floors. As well as its luxury rooms, the hotel includes a busy bar and restaurant, and conference facilities which can cater for up to 350 people. The hotel also includes the Sano Vitae spa and gym facility. It opened in 2005 and has 25 years left on a €2.5 million rent per year lease with Merzolt Ltd.
It is being sold by Savills and JLL, who have described it as the “leading hotel in Cork.”
Dan O’Connor of JLL added: “It offers a strong existing leased income stream with bright prospects for future rental growth buoyed by a robust Cork hotel trading market and positive developments within Cork city, including the announcement that Cork’s first convention centre will be constructed nearby.”