Shelbourne Hotel sale nets Kennedy Wilson $99m profit

California-based real estate investor Kennedy Wilson made a $99.1 million (€92 million) profit on the sale of the five-star Shelbourne Hotel in Dublin in late March, latest filings by the company in the US show.

The 10Q document lodged with the Securities and Exchange Commission notes that the deal was completed on March 27th, 2024. The company sold the Shelbourne, an office building in Washington and a non-core commercial asset in the UK for a combined $328.2 million.

[ Shelbourne Hotel in Dublin sold to Archer Hotel Capital ]

The Shelbourne was sold to European investor Archer Hotel Capital, which also owns the Conrad Hotel on the other side of St Stephen’s Green. The hotel had been put up for sale with a reported price tag of €260 million.

Kennedy Wilson acquired the Shelbourne in 2014 via a prepack receivership. Ownership of the prized asset had switched from Jerry O’Reilly and John Sweeney, the remaining owners from a consortium that acquired the hotel in 2004. Other members of the consortium had included builder and developer Bernard McNamara. The sale price was in 2014 was reported at $152 million.

[ Shelbourne Hotel revenue climbed 18% in year before sale ]

The stock market filing also shows a lower level of business at the Shelbourne in the first quarter of this year, a trend reported by other businesses in the hotel trade here. It generated income of $9.3 million for the three months ended March 31st, down from $10.6 million for the same period in 2023. The decrease was “primarily due to lower occupancy and decreased food and beverage revenue”.

Its expenses declined to $7.6 million in the quarter from $7.9 million a year earlier “primarily due to decreased level of activity at the Shelbourne Hotel during 2024″.

Originally established in 1824, the Shelbourne overlooks St Stephen’s Green and has 265 bedrooms, along with restaurants, bars and event facilities. The property is managed by Marriott International under a contract that runs to 2026.