CBRE: Irish hotel sales will match 2015's numbers

Radisson Blu Dublin Airport

Two months ago, CBRE suggested that that last year's record for hotel sales in Ireland (a solid €710 million) could be surpassed this year. That may not happen, but the latest CBRE bi-monthly market report suggests that 2016 could be on par with 2015.

The first three quarters of the year saw a total of 37 Irish hotel transactions close with a capital value of €283 million, while several significant transactions are due to close before year-end. Speaking to the Irish Independent, John Hughes of CBRE's hotel division noted the lack of development opportunity in Dublin and the provinces. “Demand for hotel opportunities in Dublin and provincial Ireland remains very strong from both Irish and international hoteliers alike,” he said.

Here are some notable recent deals in Ireland:

  • Three Dublin hotels were sold by Fitzpatrick Lifestyle and its backer Patron Capital Partners to the John Malone Partnership for about €150 million.
  • German fund Deka bought the four-star DoubleTree by Hilton Hotel in Dublin, formerly known as The Burlington, which is to be operated by Dalata Hotel Group.
  • Private Irish investor Situs Hospitality bought The Viking Hotel, Waterford, for about €5m from receiver Tom Kavanagh of Deloitte. The 98-bedroom hotel continues to be managed by the PREM Group.
  • In Tipperary, Irish-owned Great National Hotels and Resorts purchased the Ballykisteen Hotel and Golf Resort for more than CBRE's €2-million asking price.
  • Currently, Goldman Sachs and Tifco are awaiting Competition Authority approval for their takeover of the Travelodge franchise in Ireland. If approved, the deal would add 12 hotels with about 900 rooms to their existing portfolio.
  • Dublin City Council has granted planning permission for the redevelopment of the former Ormond Hotel with 121 bedrooms.
  • In Dublin Airport, a planning application has been lodged for a 144-bedroom hotel beside the Radisson Blu Hotel, while the Dublin Airport Authority is seeking expressions of interest for the development and operation of a 402-bedroom hotel at Terminal 2.