Sales of hotels in Ireland hit a record high in 2015, going over the €1 billion mark as domestic and foreign investors increased their presence.
According to property consultants Savills, the spike in visitor numbers to Ireland led to increased activity in the market, as well as a 20 per cent growth in RevPAR in Dublin hotels. Favourable exchange rates with the dollar and sterling also helped the sector.
Speaking to the Irish Independent, Tom Barrett of Savills Ireland said: “Ireland’s tourism industry is now achieving record volumes, and combined with a strong domestic economic recovery, this is driving high hotel occupancy rates throughout the country. This positive position attracted the attention of both domestic and international hotel operators and investors in 2015."
Major Irish players such as Dalata and Tetrarch Capital spent in 2015, with Dalata spending huge amounts on expanding its portfolio, developing its Clayton brand across the country.
Irish hotels, particualry in Dublin, became hot property for foreign investors, including US billionaire John Malone who purchased the InterContinental in Ballsbridge and investment group Lone Star making moves into the Irish hotel market.
"We predict that 2016 will show further recovery with current positive indicators being maintained. Moreover, the addition of events such as the 1916 Centenary and the box office success of Star Wars will also attract visitors to both the capital and rural Ireland," added Barrett.
In 2016, the amount spent on hotel purchases is expected to dip as owners are expected invest in refurbishment of current properties. In November, Amaris Hospitality announced that the Jurys Inn Custom House Dublin (pictured) will undergo a €5.5 million redevelopment as a Hilton Garden hotel.
