Kennedy Wilson, a property investor based in California, has made a substantial profit of $99.1 million (€92 million) from the sale of the five-star Shelbourne Hotel in Dublin, according to the most recent filings in the United States. As per the 10Q document submitted to the Securities and Exchange Commission, the transaction was finalised on March 27th, 2024. Kennedy sold the renowned Shelbourne, a Washington office building and a non-core UK commercial property for a total of $328.2 million.
Archer Hotel Capital, an investor from Europe took ownership of the Shelbourne. They are also the owners of the Conrad Hotel across St Stephen’s Green. The hotel was for sale for a speculated price of roughly €260 million.
Archer’s new addition, the Shelbourne was originally acquired by Kennedy Wilson through a prepack receivership in 2014. At that time, the remaining proprietors from a consortium that initially bought the hotel in 2004 were John Sweeney and Jerry O’Reilly. The consortium also included the developer and builder Bernard McNamara. The purchase price in 2014 hovered around $152 million.
A lower business volume is evident within the first quarter of 2024 for the Shelbourne, mirroring similar trends observed in other hotel businesses. The establishment saw a drop in income from $10.6 million in 2023 to $9.3 million within the quarter ending March 31st, this year. The decrease majorly resulted from lower occupancy rates and a decline in food and beverage sales.
Conversely, the expenses of the hotel in the quarter also experienced a decrease, from $7.9 million the previous year to $7.6 million in 2024, mainly due to less activity at the hotel.
Steeped in history since its establishment in 1824, the Shelbourne on St Stephen’s Green boasts 265 rooms along with bars, restaurants and event venues. The property has been under the management of Marriott International with a contract that extends till 2026. The latest episode of the Inside Business podcast is released weekly.