Transaction Advisory
Acquisition Advisory for SW3 & Firethorn Trust
SW3 Capital, in partnership with Firethorn Trust, was considering the acquisition of a prime site in Dublin city centre with planning permission for a large-scale hostel development. The project represented a first move into the Irish hospitality sector for both partners: for Firethorn, its first hospitality investment outside the UK; and for SW3, diversification beyond its residential platform into tourism accommodation. Given the new market context and the scale of the project, the JV required independent acquisition support to validate the business plan, align assumptions, and provide an independent and credible evidence base for securing development financing.
Project scope
Horwath HTL undertook a comprehensive due diligence review to test the project’s feasibility and investment case. The assignment began with a detailed analysis of the hybrid hostel concept, assessing how the combination of affordable beds, communal spaces, and hotel-style amenities would perform in Dublin’s demand environment. Market fundamentals — including inbound tourism recovery, event-driven peaks, and city-wide occupancy levels — were benchmarked against both existing hostels and pipeline schemes to evaluate positioning and projected performance.
The business plan was then validated through financial modeling. Revenue, operating costs, and development expenditure were independently reviewed, with sensitivity testing applied across occupancy, rate, and cost scenarios to quantify resilience. This was supported by operational analysis of staffing models, guest services, and space configuration, ensuring the proposed scheme was both efficient and commercially realistic.
To strengthen the financing case, our report consolidated assumptions, market evidence, and scenario outcomes into clear documentation to support the client in securing development finance and structuring long-term financing agreements. This included supporting material on the strategic role of the project in diversifying Dublin’s accommodation mix and aligning with international benchmarks for large-scale hostels.
Pre-opening and operational advisory services were also a key component of the engagement. This included guidance on staffing models, operational workflows, and marketing strategies to ensure the hybrid hostel’s smooth launch and market penetration. Additionally, recommendations were provided for optimising room mix, communal spaces, and guest services to align with the preferences of the target demographic.
The due diligence report provided an independent validation of the business plan, aligning JV assumptions and enabling SW3 and Firethorn to proceed with the acquisition. The deliverables equipped the client with a robust feasibility study, a clear financial roadmap, and actionable operational strategies. Horwath HTL’s involvement ensured the project’s viability, secured funding, and provided a strong foundation for the successful opening and ongoing operations of the hybrid hostel in Dublin City Centre. The engagement gave both partners the clarity required to make their first hospitality investment with confidence and established Sackville Place as a landmark entry point into Dublin’s accommodation sector.
Project Location
Dublin, Ireland
