Posted on Wednesday 21 January 2015 by Ulster Business
The building occupied by an Etap hotel on Belfast’s Dublin Road have been sold for £6.6m.
It's been bought by UK fund CBRE Global Investors, according to the firm’s commercial property arm in Belfast.
Etap will remain the tenant of the hotel on a 17-year lease.
“This building is in a popular leisure area and is within close proximity to Belfast’s central business district,” Gavin Elliott, director at CBRE said. “The investment offers a low-risk return due to the quality of the tenants, length of lease and RPI (retail price index)-linked rental uplifts every year.”
Mr Elliott said the Dublin Road area is becoming every-more popular.
“While Great Victoria Street has seen a decline in recent years, the Dublin Road is flourishing and has become a popular location for both nightlife and cinema-goers alike.”
“We are delighted to see a significant increase in investment in Belfast City Centre properties; with the improvement of the economy and the recovery of the commercial property market, I would expect to see pricing for investments let on long leases to strong covenants continuing to strengthen during 2015.”
The positive outlook will come as comfort to some of Northern Ireland’s hoteliers who have struggled over the last few years.
News of the Dublin Road sale comes just after it was revealed Belfast City Centre hotel Ten Square has been placed into administration.
But a few doors along from Ten Square things are looking rosier as the company behind the Galgorm Resort & Spa prepares the Scottish Mutual building in Donegal Square for transformation into a 40-bedroom boutique hotel.