CBRE is reporting that last year's record for hotel sales in Ireland (a solid €710 million) could be surpassed this year. While no new hotels were formally put up for sale in July and August, other properties are likely to hit the market in the fall, and a number of transactions proceeded to “final exclusivity stage” in recent weeks, including the Doubletree by Hilton and The Gresham Hotel.
Following nearly €140-million worth of takeover deals for the first half of 2016, CBRE is predicting that more than €400 million of Irish hotel transactions could be signed by the end of the year. Given the much-discussed lack of rooms in Dublin, “it is frustrating to see so many proposals to provide much-needed hotels being appealed by third parties and in some cases being refused planning permission,” the report claimed.
Recent forecasts from STR predict continued improvements in Ireland’s occupancy, RevPAR and ADR over the next few years—if enough rooms are available to meet the ever-growing demand.
The solid prices are attracting both owner/operators and investors to the marketplace, and development and planning applications are surging thanks to values that now exceed building costs.