The hotel sales market got off to a flying start in the first quarter of the year, as €126 million worth of hotels were transacted in that period, up 37 per cent on the same time frame last year.
According to the latest review of the market by DTZ, the vast majority of the spending was from the blockbuster deals, with the top five sales accounting for 80 per cent of the total spend.
The biggest deals include JP McManus's purchase of the five-star Adare Manor Hotel and Golf Resort in Co Limerick (pictured) for €31.5 million and the Temple Bar Hotel going to a US consortium for €27.5 million.
Dalata has been very active expanding its portfolio, accounting for a large portion of the sales across the country, including the Pillo Hotel in Galway, a purchase worth €10.5 million.
The review also suggests that market will remain active for the rest of the year. A number of pipeline deals are currently being fleshed out, including Nama's 'Project Crystal', a portfolio of seven hotels with a guide price of €35 million.
Speaking about the spike in sales, DTZ’s chief economist Marian Finnegan said: "It appears that the removal of the capital gains tax (CGT) exemption at the end of 2014 has not moderated demand and activity in the hotel sector in the opening months of 2015, with sales achieving a 40 per cent quarterly uplift and investor interest continuing to strengthen each quarter.”
