Firethorn Trust has completed the acquisition of a development site in central Dublin to create a purpose-built best in class hostel (PBHA). Firethorn has partnered with SW3 Capital on the acquisition and future operation of the asset.
In an off-market transaction, Firethorn purchased the Sackville Place site with planning permission to develop a 588-bed hostel in the heart of the Irish capital.
The property is ideally situated for tourist accommodation as it sits off O’Connell Street and is nearby the multiple attractions that Dublin offers.
With a specification designed to enhance the provision of affordable accommodation in the city, the proposed internal masterplan includes a mix of double, triple and quadruple bunk dormitory rooms and private double rooms across six storeys, creating a total of 588 bed spaces.
The ground floor and basement will offer modern communal social spaces and amenities including a bar, café and lounge, which will be open to the public, as well as hostel guests.
Upon completion, Firethorn will retain operational management of the hostel, working in partnership with real estate investment managers, SW3 Capital.
Marcus Weeks, Director and Head of Living at Firethorn Trust, said: “This is an exciting addition to Firethorn’s Living portfolio. Not only is the site our first PBHA asset, but it also represents our first acquisition outside of the UK, reflecting the scale of our ambition and the strength of our team’s expertise.
“By offering a mix of dormitory and private rooms, along with amenities that can be enjoyed by guests and the public, we hope to create a vibrant and versatile space that will cater to visitor demands while making a positive contribution to the local area.
“This project enables us to capitalise on Dublin’s position as a prime tourist destination whilst addressing growing demand for high-quality, affordable accommodation in the city. We look forward to working with SW3 to bring this vision to life.”
The Dublin site is the latest addition to Firethorn’s rapidly expanding Living portfolio, following recent acquisitions of purpose-built student accommodation sites in Edinburgh (February 2024) & London (August 2024), the boutique hotel Malmaison York (June 2024), and One Bessborough Gardens in central London (June 2024).
Ned Truman, Director and Partner at SW3 Capital, said: “We are delighted to be working with Firethorn and excited about this sub-sector of hospitality, which historically would be viewed as cheap, low-quality accommodation. This new breed of hostel offers affordable accommodation alongside amazing experiences.
SW3 will be operating Sackville Place through its new Hostel Operating Business “The Gofer”. SW3 has extensive experience in operating real estate assets through its residential asset management business, Occu, which is Ireland’s largest independent PRS platform with over 3,000 units and €1.5bn AUM. We are excited to bring our own operational twist to this emerging sector and grow the overall offering for investors and guests alike.”
Work is expected to start on site in March 2025, with practical completion due in January 2027.
Dentons provided legal advice to the Partnership and JLL & Crowe advised on the acquisition.
