The average daily rate for a room in the Shelbourne Hotel in Dublin jumped to €426 at the end of September from €410 last year, driving revenues at the five-star up by almost one-fifth, according to its US owner.
Kennedy Wilson, the property investment group that spent $152 million (€138 million) in 2014 to take control of the 265-bedroom hotel from Irish Bank Resolution Corp, formerly Anglo Irish Bank, said in US filings on Wednesday that revenues from its hotel operations in the first nine months of 2023 are already approaching the full-year total for 2022.
The Shelbourne was the only fully operational hotel in the Kennedy Wilson portfolio in the three months to the end of September, although it recently opened a resort in Hawaii after a refurbishment.
According to the unaudited financial statements filed with the Securities and Exchange Commission, Kennedy Wilson’s hotel revenues jumped by more than 18 per cent, from $14 million in the third quarter of 2022 to $16.4 million between June and September this year, the peak summer tourism season.
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In the first nine months of the year, revenues from its hotel operations climbed to $42.7 million, close to the $46.9 million generated in 2022 with three months to spare.
Average daily room rates stood at $453.90 (€426) at the end of September. Although it did not provide any detail on occupancy levels during the third quarter, Kennedy Wilson has previous attributed the rise in rates and revenues to increased travel to Dublin following the pandemic.
The property investment company has also seen an increase in its cost base at the Shelbourne, with expenses from its hotel operations rising to $27 million in the first nine months of the year compared with $20 million over the same period last year.
Kennedy Wilson’s annual report last year suggested the hotel’s valuation has increased by a quarter to €236 million. It has spent about €36 million on refurbishment works since it acquired the property.
The California-based group was one of the first big overseas buyers of property assets following the financial crash more than a decade ago. It invested heavily in Ireland and now controls offices and apartments as well as the hotel.
“We saw continued strong demand for rental housing and further growth in our debt investment platform and our fee-bearing capital,” said Kennedy Wilson chairman William McMorrow in a statement accompanying the results. “We also remain on track to complete and lease-up several development projects in the near term, including approximately 1,000 multifamily units delivered in the third quarter.”
The company recently completed three residential developments in Dublin that have added about 800 units to its multifamily portfolio here.
