Successful Jacobs Inn Hostel in surprise sale guiding €13.5m
Budget hostel popular with tourists for two decades
The Jacobs Inn Hostel in Dublin: The purpose-built hostel, with its 428 bed spaces, is for sale in excess of €13.5m.
John Ryan of that agency’s hotel division is seeking offers in excess of €13.5 million for the purpose-built city centre hostel with 428 bed spaces, which are heavily booked all year round, mainly by overseas visitors.
The Talbot Place business, located just off Talbot Street, has provided budget-style accommodation since it opened in 1997. The property was acquired and further upgraded in 2014 by the Tetrarch Hospitality Group, which is better known for its ownership of upmarket hotels such as The Marker beside the Bord Gáis Energy Theatre, Powerscourt in Co Wicklow and Mount Juliet in Co Kilkenny.
Tetrarch’s surprise decision to offload the profitable hostel may have been prompted by the ongoing rush to build residential accommodation for thousands of students in the inner city, one of the largest developments only a short distance away on Gardiner Street. However, the hostels have always attracted a different type of business, mainly overseas tourists who rely on the cheap overnight rates and cherish the opportunity to meet up with other short-stay visitors in a friendly environment.
Like Jacobs Inn Hostel, the even larger Generator Hostel at Smithfield with 539 bed spaces is also trading successfully.
Hostels are also considerably cheaper, with an average charge in Jacobs Inn of €22 per night. The hostel has 65 bedrooms in all, offering a range of accommodation, including dormitories and private rooms. Other facilities include an open plan reception area, funky chill-out section, games room, guest self-catering kitchen, diningroom, laundry and a luggage room. Guests also have the use of an outside terrace on the third floor with superb views over Dublin’s inner city.
Much of the success of the hostel over the years has been due in large part to its location within easy walking distance of Busáras and Connolly Station, the starting points for bus and rail facilities servicing much of the country.
The more recent addition of the Luas and Dart services has strengthened the appeal of the area, which is also within a stone’s throw of O’Connell Street and the more vibrant area around Trinity College.
John Ryan said that by catering for individual budget travellers and groups, Jacobs Inn was “highly profitable” and likely to appeal to hostel operators who would have the freedom to brand it as they thought fit.
“Most importantly, the property is presented in turn-key condition with no substantial capital expenditure required. In addition, there is scope to further develop the business in line with the continued growth in tourism in the Dublin market.”