The first half of 2016 has seen nearly €140-million worth of takeover deals in Ireland, largely driven by activity outside Dublin, according to DTZ Sherry FitzGerald. And the good news is only expected to get better.
In Dublin itself, a surge of activity is poised to make the second half of the year an even better one for the market—“boosted by a number of large hotels which are currently in negotiations,” the company said. Room rates and occupancy numbers are both increasing, and the Brexit does not seem to be having a severe impact on the industry.
DTZ has noted in the past how much Dublin needs new hotels and how appealing the market is for investors (most of them, anyway). With that in mind, it should come as no surprise that deals in the sector worth more than €420 million are set to close before the year is out.
The industry recorded an almost 23-percent increase in revenue per available room last year, the highest of any European city. The pace of growth has continued this year, rising 21 percent in the first seven months of the year, according to STR Global. The average daily rate for Dublin hotel rooms has grown 19 percent in those months, and has now reached a record €128.15, a full 18 percent above 2007 levels.
As such, it's no wonder that investors are eyeing Dublin opportunities. Earlier this month, the year-long saga of Dublin’s Gresham Hotel came to an end as Ireland’s National Asset Management Agency agreed to sell the property for €92 million to Spanish firm RIU Hotels and Resorts, which outbid local Goldman Sachs offshoot Tifco for the hotel.