Total annual Irish hotel sales could surpass €1.2 billion in 2024, according to a new report on the Irish and European hotel markets from property consultants CBRE.
After an exceptional opening few months of the year for hotel transactions in Ireland, the report predicts that vendors are still electing to test the market through discreet processes, and CBRE estimate that there are in excess of €600 million of Irish hotels currently on the market or being prepped for sale.
Record Level
The research team have noted that total annual Irish hotel sales could surpass €1.2 billion in 2024, a record level of spend. The previous peak year was 2006, when €1 billion worth of hotels traded, including the Great Southern Hotel Portfolio and Jury’s Inn in Ballsbridge.
CBRE noted that there are several notable hotels on the market at present, including the Morrison Hotel in Dublin 1, the G Hotel in Galway, and the Slieve Russell in Cavan, along with several off-market trophy assets both in Dublin and in regional Ireland.
'High Inflationary Environment'
“The investment case around both Irish and European hotels is particularly strong at present," said Colin Richardson, director of research at CBRE Ireland.
"This is due to several factors, including, the strong trading performance of hotels; the advantage of dynamic hotel room pricing in a high inflationary environment; the shift away from investment in traditional core sectors at present, a general undersupply of ‘beds’ across Europe, and the long-term structural growth in air travel."
Hotel Occupancy Rate
According to data from STR, in 2023 Dublin achieved the highest hotel occupancy rate (83%) out of 35 European markets.
Dublin also ranked 7th highest in terms of RevPAR.
"We believe that the passenger cap at Dublin Airport should be increased to ensure the Irish hotel market and economy continues to benefit from the huge growth anticipated in global air travel over the coming years,” said Richardson.
