For the first half of the year, a total of €655 million was transacted in the hotel sector, a near fourfold increase on the approximately €173 million traded in the first half of 2023, a factor that pushed 12-month transaction volumes to an all-time high of almost €790 million in in the first half of the year.
This is according to a new report from global real estate provider Cushman & Wakefield which indicates that trading performance remains strong but with slightly softer trends visible in Dublin.
The Ireland Hospitality Marketbeat report notes that activity was supported by continued good operational performance across the sector and a couple of large deals including the sales of the Shelbourne Hotel and a majority stake in the Dean Hotel Group.
Occupancy And ADR
Despite ongoing supply growth, Cushman & Wakefield said the occupancy and ADR in Irish hotels remained healthy in the first half of 2024, with only minor softening relative to the first half of 2023.
While RevPAR in Ireland declined by 1.2% to €125 in the first half of 2024, it was the 3rd-highest level in Europe.
Dublin Market
In Dublin, the occupancy reached 80% in the first half of 2024, the second highest in Europe, albeit a minor decline from 2023.
This, combined with a 4% drop in ADR, resulted in a 5% RevPAR decrease, although Cushman & Wakefield noted that this was 23% above pre-Covid level in 2019.
Supply
The report shows that 510 new rooms were delivered in Dublin in the first half of the year while Premier Inn also opened their first hotel in Cork in January.
Cushman & Wakefield estimate there are currently in excess of 1,700 hotel rooms under construction in Dublin (around 6% of Dublin’s room stock) while two hotels in Cork are also due to open later this year.
'Increased Competitiveness'
'The new supply is welcome to satisfy growing demand, particularly in the Dublin market, albeit the increased competitiveness might constrain occupancy and ADR growth,' according to the authors of the report.
'Ireland’s economic outlook continues to support the hotel sector.'
Employment
The report found that employment hit another all-time high of 2.71 million while wages (up 4.7% year on year in the first quarter) are now growing in real terms as inflation (2.2% in June 2024) eases.
Overnight trips by foreign visitors (over rolling 12-month periods) gradually rose in the first half of the year as has the average spend.
