It looks like CBRE was right when it said 2016 could be a banner year for Ireland's hotels: With just over a week to go before 2017 arrives, the totals are in, and the numbers are good.
CBRE's latest report lists 65 hotels sold in the country this year for a total of more than €800 million. For comparison, 2015 saw 63 sales for a total of €710 million.
"This was a phenomenal result boosted in no small part by the sale of some well-known Dublin hotel properties such as The Gresham Hotel, the Doubletree by Hilton and the Lifestyle Collection (The Spencer, Morgan and Beacon hotels) as well as high-profile provincial hotels including Lyrath Estate in Kilkenny and Farnham Hotel in Cavan," Lisa Keogh of CBRE said. "In addition to the high volume of asset sales in 2016 totaling more than €800 million between them, a number of hotels around the country also traded as part of loan portfolios during the last 12 months."
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 will be operated by Dalata Hotel Group.
- Private Irish investor Situs Hospitality bought The Viking Hotel, Waterford, for about €5 million 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.
- Dublin City Council 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.
While the numbers are certainly positive and indicate good things for Ireland's hospitality future, Keogh warned that 2017 would probably not repeat the record sales volumes of 2015 and 2016.