Duo of prime city hostels in Dublin and Galway for sale

Dublin, 13 June 2018 – The opportunity to acquire a duo of superbly located hostels has arisen with the announcement that Barnacles Hostel, Temple Bar, Dublin 2 and Barnacles Hostel, Quay Street, Galway are for sale by private treaty through hotel property specialists CBRE. These prime assets are available in one or more lots and the sale of the Barnacles portfolio provides an exceptional opportunity to acquire a well-established hostel business in excellent condition with a combined 289 bed spaces.

Barnacles Hostel Dublin is superbly located in the heart of the vibrant Temple Bar area adjacent the Temple Bar pub, the Temple Bar Music Centre and Meeting House Square. Temple Bar is a most successful tourist, artistic and cultural quarter renowned for its eclectic mix of restaurants, cafes, bars and late-night entertainment venues along with theatres, museums and art galleries. Barnacles Hostel Dublin comprises 171 bed spaces with 35 rooms spread over three upper floors over ground floor reception. The accommodation comprises a mix of bunk and single beds in private and shared rooms, all of which are en-suite. There are communal public areas including a communal kitchen and common “chill-out” room.

Barnacles Hostel Galway is a multi-faceted business comprising hostel properties, convenience shop and restaurant investment property. The entire are centrally located on Quay Street, in the heart of the Latin Quarter of Galway City, a “must see” city on the itinerary on most tourists to the country. Galway is one of the most sought after locations for a budget accommodation business as it offers an all year round business model supported by many cultural, music and sporting festivals during the summer months and its university and college student base during the winter months. Barnacles Hostel Galway is superbly located in the heart of the busiest tourist area of the City. The Hostel comprises a total of 118 bed spaces with the main four storey building containing 112 bed spaces. There are six additional bed spaces located in two buildings known as Kirwan’s Lane Townhouse and Teach Ard both of which are located to the rear of the property.

No. 10 Shop
Also included in the sale and fronting Quay Street is No 10, a busy and highly profitable convenience shop which forms an integral part of the hostel turnover. The shop benefits from a continues all day trade on the busiest pedestrian street in Galway linking Eyre Square to the Spanish Arch area of the city.

Restaurant Investment
An adjoining restaurant investment property – Trattoria Restaurant – is available as a separate lot through joint agent O’Donnellan Joyce. Please note, the tenant of the restaurant investment property is not affected by the sale. The restaurant comprises a ground floor open plan area, kitchen, toilets and ancillary stores and extends to approx. 130 sq. m. (1,400 sq. ft.). The restaurant has traded as a highly successful venue and popular with locals and tourists. The restaurant is held on a 35 year lease from 1994 at a current rent of €73,200 pa. The next rent review is 2019

According to selling agent John Hughes of CBRE Hotels “the sale of the Barnacles portfolio of hostels provides a superb opportunity to acquire a ready-made hostel business of scale with both properties occupying prime trading positions in the heart of Temple Bar in Dublin and Quay Street in Galway. Both properties are presented in excellent decorative order throughout and the businesses are highly profitable with increasing revenues. The sale of Barnacles Hostel Dublin and Barnacles Hostel Galway is likely to appeal to many hostel operators and investors as they are being offered for sale in various lots, unencumbered of brand or third-party management agreements providing intending purchasers complete flexibility. Importantly, both properties are presented in “turn-key” condition with no substantial capital expenditure required.

The properties are offered for sale as follows:

Lot 1: The Entire - offers in excess of €11m

Lot 2: Barnacles Hostel Dublin - offers in excess of €6.5m

Lot 3: Barnacles Hostel Galway including the restaurant investment property (tenant not affected) – offers in excess of €4.7m

Lot 3A: Barnacles Hostel Galway, excluding the restaurant investment – offers in excess of €3.4m

 

Lot 3B: Restaurant Investment – offers in excess of €1.35m

 
 
 

 

 
 
 

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.