THE DUBLIN Airport Authority (DAA) was keen to stress yesterday that it is not back in the hotel business, following the announcement of a €130 million joint venture to build a 470-bed hotel and multi-storey car park. DAA quit the hotel trade in 2006 with the sale of the Great Southern Hotels, netting a profit after tax of €125 million in the process, and has no desire for a return.
The hotel will be owned and operated by Tifco, which owns and manages the Clontarf Castle hotel and the Crowne Plazas here.
DAA is, however, very much in the car-parking game and the new 2,900-space facility beside the hotel, which it will own and operate, will bolster its position as the biggest car park operator in the capital.
Car parks are a huge cash cow for the DAA. It operates 2,200 short-term, and 19,600 long-term spaces at the airport.
With rates of €40 a day for the short-term facility and €9.50 daily for long-term in Dublin, DAA earns €60-€100 million a year from this precious landbank.
Adding 2,900 lucrative short-term spaces close to the site of Terminal 2, which is due to open at about the same time as the hotel, will boost the DAA's coffers considerably, even though some will be used for car hire and for patrons of the hotel.
An average daily rent roll of €30 a space would yield the DAA just shy of €32 million a year from its new car park - a handy earner at a time when the DAA is gearing up to spend €395 million on T2 and €1.2 billion overhauling the entire airport complex.
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