The well-established Sleepzone Hostel in Galway city has been rebranded and has begun trading as The Dawson Hostel following the sale of the business on behalf of Ronan Garvey to a consortium of private Irish investors involving Barry McGrath, a former global partner with law firm Maples & Calder.
While the value of the deal, has not been disclosed, the Galway hostel is understood to have sold for the €5 million price that had been guided by John Hughes of CBRE’s hotels division when he brought the property to the market last January.
Galway’s Dawson Hostel will continue to offer tourist accommodation and will now have its business aligned with that of the Dawson Hostel at 35/36 Dawson Street in Dublin city centre. The property, which before its closure had traded for many years as the Dawson Hotel, was acquired by Mr McGrath and his fellow investors for about €16 million late last year.
Located on Bóthar na mBan and within a short walk of Eyre Square, The Dawson Hostel Galway comprises a purpose-built four-storey accommodation facility with 180 bed spaces distributed across 35 rooms, along with a reception area, a communal kitchen and diningroom at ground-floor level.
The property sits adjacent to Corrib Shopping Centre car park and is in excellent condition having benefited from ongoing investment by the previous owner.
Galway city has long been acknowledged as one of Ireland’s most sought-after locations for hostels as it offers an all-year-round business model supported by cultural, music and sporting festivals during the summer months and its university and college student base during the winter months. The city is a natural base for visitors to Connemara, the Burren and the Wild Atlantic Way.
Commenting on the sale of the property, John Hughes of CBRE said: “The Sleepzone Hostel provides a superb opportunity for the new owners to grow a well-established business. The property occupies a prime trading position in the heart of Galway city while the business is highly profitable.”
