Kennedy Wilson, the American real estate investment company, was able to maintain a steady recovery post-pandemic at their Shelbourne Hotel last year. The luxury hotel was readied up for sale, showing a significant increase in trading revenues by over 18% to £45.7 million (€53.3 million) as per the yearly audit reports filed with the US Securities and Exchange Commission.
Kennedy Wilson Europe Real Estate Limited, a subsidiary of the group, had acquired the Shelbourne in 2014. The hotel’s operating costs also surged from £29.6 million in 2022 to more than £35 million in 2023, as recorded in the financial statements. This resulted in the firm securing over £10 million in gross profits from the hotel business.
According to the director’s report attached to the accounts, the group’s total gross revenues escalated from £154.9 million in 2022 to £165.6 million in 2023. This increase was primarily credited to the robust performance of the Shelbourne Hotel.
The hotel was eventually purchased in March by Archer Hotel Capital, a European investor. This group also owns the Conrad Hotel located on the opposite side of St Stephen’s Green. The sale price was reportedly slightly lower than the original guide price of €260 million, with the property initially listed for sale at the close of the previous year.
The Shelbourne was included in a package deal worth $335 million (€311 million). This package also incorporated a UK retail asset and a US office block. Archer paid about £216 million (€251.9 million) in total, according to the latest submissions by Kennedy Wilson to the SEC, marking the disposal of the UK retail asset and the Shelbourne post their 2023 fiscal year-end.
The ownership of the hotel had transferred from Jerry O’Reilly and John Sweeney, the last holders from the consortium that had taken over the hotel in 2004. Notable members of that consortium included the builder and the developer Bernard McNamara. Kennedy Wilson had procured the Shelbourne via a prepack receivership in 2014, with the selling price back then being around $152 million.
Kennedy Wilson offloaded a pair of office buildings at Dublin’s Blackrock Business Park. The properties were sold to Remake Asset Management at a reduced rate of €13 million, a significant decrease from their previous €17 million value and slightly below the €14 million Kennedy Wilson spent to acquire them in 2016.