I was pondering the other day what name would now be attributable to the apartments at the former Four Seasons Hotel on the Merrion Road now that it has been rebranded as the InterContinental. Well, Lisney have answered my question:
Penthouse 11, InterContinental Hotel, Ballsbridge, Dublin 4
€1,300,000 - 2 Bed Apartment 158 m² / 1701 ft² For Sale
Service charge: €20,000 per annum
When I was thinking about this, I thought surely this rebranding will dampen values? I would personally attach a certain cachet to the Four Seasons, but not to InterContinental. When it was operated as FS, the rooms were about 30% more expensive with rooms now from €190. While it is now better value for guests for effectively the same hotel, surely this reduces the ‘exclusivity’ factor by some degree - something you are likely to be concerned about if you are willing to pay €764/sqft for an apartment with a €20k/year service charge.
A lovely apartment by all accounts, though, and great taste in furnishings.
If you compare that service charge (which includes use of the hotel swimming puddle) with more reasonable 2k the difference is 18k.
You can capitalize the cost in this way.
The additional 18k could be covered by a property investment yielding about 5%, so you could go out and buy an additional couple of less intercontinental apartments for around 400k which would yield the required 18k. This would take your investment up from 1.3m to 1.7m.
However to get the 18k you have to use after tax income from the non-intercontinental ballistic apartments - so depending on your tax position (say 50% marginal), you probably need about 4 of these run-of-the-mill gaffs rather than 2, to get you 18k after tax.
So your adjusted purchase of the inter-galactic flat would effectively cost you of the order of 1.3m + 800k = 2.1m.
2m round, er, with 100k in an envelope for the curtains and couch…?
Maybe. If I paid €4m for an apartment in the Four Seasons, and all my legal documents, etc. attest to me having an apartment at the Four Seasons, I would insist that I still have an apartment with an address at the Four Seasons whether the hotel is there or not.
Understand your desire to maintain status etc. but I’d be surprised if the lawyers for both the hotel building owners and the hotel management companies haven’t inserted a “get out of jail free” clause, for exactly those circumstances. Hotel buildings can sometimes change “flag”… frequently. Less so at the upper end, but I’ve seen that happen too. I think most upscale hotel chains do residences these days, and plan that a building could in theory switch flags if the building owners are dissatisfied with the hotel management company or vice versa. I think a majority of chain hotel buildings are probably owned by REIT’s these days, but don’t quote me on that. Alternatively, the hotel management companies restrict residences to buildings they actually own, which doesn’t seem to be the case here. Certainly, St. Regis, Baccarat, Mandarin, Peninsula, Conrad all do residences. Ritz do them worldwide, except Europe funnily enough.
Sherry Fitz have a one bed on the market now too, came on a short while after Lisney brought the two bed to market.
Residence 13, The InterContinental, Ballsbridge, Dublin 4
€850,000 - 1 Bed Apartment 120.8 m² / 1300 ft² For Sale myhome.ie/residential/brochu … -4/3074774
Service charge not listed on the 1 bed. At 4% I make the holding cost of this “asset” €93/night + service charge.
Don’t really understand the market for these but I guess if you need an occasional crash pad and have infinite money the security and convenience of living in a hotel but having your own stuff and never having to check in might appeal.
What hasn’t he bought? Some flip - paying €50m after the owners bought it a few years ago for only €15m. With the dollar and euro practically on par at present, I suppose everything looks like good value to him.
Seemingly cost about €60m to develop, so he’s paying not far off that. Onerous €700k ground rent payable to the RDS yearly, to which the majority of the apartments’ service charge money goes I imagine.