2 weeks Ago
The Irish hostel group A Star Backpackers has sold a development site off O’Connell Street, Dublin, to Firethorn Trust, a UK real estate investor and developer which is making its first acquisition outside of the UK. A Star was founded by Dublin businessmen Brendan Smyth and Joseph O’Leary and they are reported to have bought the site at Sackville Place from Technological University Dublin for €5.5m.
They subsequently secured planning permission for a six-storey, 588-bed hostel and this permission could have considerably enhanced the value of the site. A spokesperson for Firethorn declined to disclose the price it paid and said that Firethorn will deliver the hostel in partnership with real estate investment managers SW3 Capital which already has invested in a number of residential projects in Dublin. Located opposite the Moxy Hotel on the corner with Marlborough St, the hostel is also close to Clery’s Quarter.
Its ground floor and basement will offer modern communal social spaces and amenities including a bar, cafe and lounge, which will be open to the public, as well as hostel guests. The plans are designed to provide affordable accommodation offering a mix of double, triple, and quadruple bunk dormitory rooms and private double rooms. Upon completion, Firethorn will retain operational management of the hostel, working in partnership with SW3 Capital.
JLL advised the purchasers. Work is expected to start on site next spring and be completed in January 2027..
