The Dublin-based, five-star Shelbourne Hotel, a jewel overlooking St Stephen’s Green, has been procured by the European investment firm Archer Hotel Capital. This adds to Archer’s portfolio which also includes the Conrad Hotel, located on the opposite side of the Green.
The details of the transaction were outlined by Kennedy Wilson in a stock market document. The document revealed the divestment of the Shelbourne, a commercial site in Washington and a retail unit in the UK, amassing a sum of $335 million (€311 million). Post debt repayment, the company enjoyed profits of $120 million and cash receipts amounting to $238 million.
Founded in 1824, the Shelbourne boasts of 246 rooms in addition to eateries, pubs and amenities for events. The hotel is currently under the supervision of Marriott International, a contract which is active until 2026. The hotel was on the market for an approximate €260 million.
Co-CEO of Archer, Dominic Seyrling, who expressed delight on the acquisition, asserted that the procurement resonates with Archer’s goal to invest in magnificent resources with sustainable value. He assured that Archer is committed to uphold the rich legacy of the Shelbourne whilst augmenting its services. The investor is excited for the journey ahead with this iconic Dublin landmark.
The consulting team included Arthur Cox, Allen & Overy, Grant Thornton, TFT, WSP, and Lockton, while financing was secured through Deutsche Bank.
Archer is an European hotel investment entity, co-owned by affiliates of APG Asset Management and GIC, established in 2018. It currently owns 13 hotels in Europe, almost 4,000 rooms, totalling an asset value of approximately €2 billion, as per its online portal.
The Conrad was purchased by Archer in 2019 which later received approval for significant expansion.
Kennedy Wilson initially acquired the Shelbourne in 2014, through a pre-pack receivership. Former possession was with Jerry O’Reilly and John Sweeney, two remaining proprietors from a syndicate that had initially secured the hotel in 2004. Other syndicate members included the developer and builder Bernard McNamara.