Firethorn Trust has completed the acquisition of a development site in Dublin to create purpose-built hostel accommodation.
Located on Sackville place, the 588-bed hostel will comprise a mix of double, triple, and quadruple bunk dormitory rooms and private double rooms across six storeys, with the ground floor and basement to feature a bar, cafe and lounge which will also be open to the public.
The Dublin site is the latest addition to Firethorn’s rapidly expanding Living portfolio, following its acquisitions this year of purpose-built student accommodation sites in Edinburgh in February and London in August; its purchase of the boutique hotel Malmaison York in June, and the purchase of One Bessborough Gardens in central London in June.
Work is expected to start on site in March 2025, with practical completion expected in January 2027. Upon completion, Firethorn will retain operational management of the hostel, working in partnership with real estate investment managers, SW3 Capital.
Dentons provided legal advice to the partnership. JLL & Crowe advised on the acquisition.
Why it matters
Hostels have continued to capture the attention of investors, with Generator and A&O hostels seeing the benefits as research predicts that the global hostels market will grow to $7.65 billion in 2027.
What they said
Marcus Weeks, director & head of living at Firethorn Trust said: “This is an exciting addition to Firethorn’s Living portfolio. Not only is the site our first purpose-built hostel accommodation (PBHA) asset, but it also represents our first acquisition outside of the UK. 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.”
Ned Truman, director & partner at SW3 Capital added: “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. We are excited to bring our own operational twist to this emerging sector and grow the overall offering for investors and guests alike.”