Firethorn Trust has completed the off-market acquisition of a development site in Dublin on which it intends to build a purpose-built hostel accommodation (PBHA) scheme.
Firethorn has partnered with SW3 Capital on the purchase and future operation of the Sackville Place site, which has planning permission to develop a 588-bed hostel in the heart of the Irish capital.
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 W3 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.”
Ned Truman, director and 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.
“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 Firethorn and SW3 and JLL and Crowe advised on the acquisition.
