Head of Hotels Ireland Savills Dublin Airport Andrew Sherry Associate Director Development Land Aaron Spring Senior Surveyor Hotels & Leisure Aaron Spring Senior Surveyor John Brennan General Manager Commercial Ruth Scallon Head of Commercial Concession Lisa Jordan Terminal 2 Hotel Project Coordinator
Operate a Terminal Linked Hotel at the Fastest Growing Major Airport in Europe • Ready to go 0.33ha (0.81 acre) site • Less than 100m from Terminal 2 • Planning for 22,840 sq m 11 storey hotel • 402 Bedrooms, 27 sq m average size • Significant F&B opportunities and extensive meeting room capacity • 2015 RevPAR grew by 27% in Dublin Airport Area Hotels & STR forecast 20% growth for Dublin in 2016 The Best Hotel Development Site in Ireland
build a 3,110m runway, 1.6k north of the existing main runway • Construction is scheduled to start in Q2 2017 and the Runway will be fully operational by 2020 • In 2015, a record 25 million passengers used Dublin Airport. Passenger numbers continue to grow strongly in 2016 with double digit growth recorded this year • Dublin Airport is the fastest growing airport in Europe
a business campus • Newly refurbished ONE Dublin Airport Central fully let to ESB International • daa are in the process of developing the first phase of this with a planning application for 4 buildings totalling circa 42,000 m2 • Vibrant business community • Virtual Dublin Airport Central “Chamber of Commerce” • Dedicated tenant focused property team • Join over 200 vibrant businesses at Dublin Airport Central
2016(F) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 (F)* No. of Trips (000s) Other Areas USA and Canada Other Europe Great Britain Source: CSO * If +12% +12%
20% 30% 40% 50% 60% 70% 80% 90% 100% 0 30 60 90 120 J 14 F 14 M 14 A 14 M 14 J 14 J 14 A 14 S 14 O 14 N 14 D 14 J 15 F 15 M15 A 15 M 15 J 15 J 15 A 15 S 15 O 15 N 15 D 15 J 16 F 16 M 16 A 16 M 16 J 16 J 16 A 16 S 16 ADR RevPAR OCC
hotels generally achieve higher Occ % and ADR than off site competitors1 • Used as a hub for corporate meetings where people fly in from different locations2 • Convenient location for short same day business trips and meetings2 • No commute - time insulated from bad weather and delays2 • Unique ability to capture day use from international travellers and short haul air crew2 • F&B can compete with airport outlets from non-hotel guests2 • Research shows guests prefer to stay at connected terminal hotels and are willing to pay a premium to do so3 1 “Airport Hotels – Laying the Foundation for a synergistic Relationship” – Summer 2015, Boston Hospitality Review 2 “RevPAR Penetration at Airport Terminal Hotels” – April 2008 HVS 3 “Results Soar at hotels connected to Airports” – April 2013 Hotel News Now (STR)
•323 Bedrooms •4 Star •Significant Capital Expenditure required •c.€285k per room The Gresham Hotel c. €92m •Burlington Road, Dublin 4 •502 bedrooms •4 Star •Rebranding to Clayton •c.€360k per room Doubletree (Burlington) c. €180m •IFSC, Dublin 1 •169 bedrooms •4 Star •c.€400k+ per room The Spencer Hotel •Fleet Street, Dublin 2 •129 bedrooms •4 Star •c.€400k+ per room The Morgan Hotel •Sandyford, Dublin 18 •88 bedrooms •4 Star •c.€225k+ per room The Beacon Hotel c.€150m
Opened 2016 342 1,144* 383* Due 2017 Due 2018 AM:PM (October 2016) Room Pipeline by Date Confirmed 4,313 2,499 1,486* Speculative On Hold AM:PM (October 2016) Room Pipeline by Status Dublin five openings since 2007: • Gibson Hotel (2010) • Marker Hotel (2013) • The Dean (2014) • Temple Bar Inn (2015) • Holiday Inn Express (2016) Dublin needs as many as 30 new hotels (5,000 bedrooms) between now and 2020 Source: ITIC (2014) *Excludes impact of Clyde Court closure January 2016 (185 bedrooms) and expected closure of Ballsbridge Hotel in 2018 (400 bedrooms).
scale (402 bedrooms & meeting rooms) = impressive profit margins • Easy to find, great transport links and extensive car parking • High profile location, with very strong physical presence • Significant volume of passing traffic & footfall • Captive audience • Branding opportunity
Airport Area Hotels RevPAR = €81 • 2016 RevPAR forecast +20% = €96 (September YTD = €98.77) • Terminal Linked Hotels Average Performance Premium v Airport Area Hotels in the 6 years to December 2015 = 41% • “IF” Terminal 2 Hotel had RevPAR of €125 = Room Revenue of €18m • “IF” Room Revenue = 70% of mix, then Total Revenue = €26m • “IF” Profit Margin of 40% = Profit of €10.5m
note that the particulars and information contained in this brochure do not form any part of any offer or contract and are for guidance only. The particulars, descriptions, dimensions, references to condition, permissions or licences for use or occupation, access and any other details, such as prices, rents or any other outgoings are for guidance only and are subject to change. Maps and plans are not to scale and measurements are approximate. Whilst care has been taken in the preparation of this brochure intending purchasers, Lessees or any third party should not rely on particulars and information contained in this brochure as statements of fact but must satisfy themselves as to the accuracy of details given to them. Neither Savills Ireland nor any of its employees have any authority to make or give any representation or warranty (express or implied) in relation to the property and neither Savills Ireland nor any of its employees nor the vendor or lessor shall be liable for any loss suffered by an intending purchaser/Lessees or any third party arising from the particulars or information contained in this brochure. Prices quoted are exclusive of VAT (unless otherwise stated) and all negotiations are conducted on the basis that the purchasers/lessees shall be liable for any VAT arising on the transaction. This brochure is issued by Savills Ireland on the understanding that any negotiations relating to the property are conducted through it.