The former Burlington hotel in Dublin, which is being sold by the private equity group Blackstone, is generating operating profits of about €14m a year, potential bidders have been told.
Sources said Blackstone hoped to secure €170m-€180m for the 501-bedroom hotel, based on its strong profitability and scope for increases in room rates as the economy recovers. The private equity group believes the price could hit €200m in a competitive bidding process.
It is understood occupancy rates at the Dublin 4 hotel, which now trades as the DoubleTree by Hilton, are running at about 80%-85%. An increase in occupancy closer to 90% is seen as achievable and would drive profits higher in future.
![Dalata, the listed hotel group, has ruled itself out of the race for the DoubleTree](https://cdn.statically.io/img/www.thetimes.com/imageserver/image/%2Fmethode%2Fsundaytimes%2Fprod%2Fweb%2Fbin%2Fb119ddd2-1474-11e6-bc21-7254b462cddd.jpg?crop=1500%2C1000%2C0%2C0)
Property sources said the bidders were likely to include pension funds and international private equity groups rather than hotel or property companies. “The profit level and the yield would be very attractive to a pension fund,” said one hotel sector source.
The Sunday Times revealed last month that the hotel had been quietly put on the market by Blackstone. The US group bought the hotel for €67m in November 2012 and spent about €16m refurbishing the property.
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Sources said it was likely that Blackstone was taking about €10m profit a year from the hotel. If it sells for the target price, the private equity group would be in line to clear well over €100m profit on the sale.
Dalata, the listed hotel group, has ruled itself out of the race for the DoubleTree.