The positive trends witnessed in the Irish hotel market in 2013 are set to continue, according to property consultants, Savills. In a statement issued today, Savills report that the value of hotel sales in Q1 2014 is 150% higher than this time last year. A total of 13 hotels worth almost €85m were sold in the first 3 months of the year. This compares to a total of 6, worth €34m, in Q1 2013.
The positive trends witnessed in the Irish hotel market in 2013 are set to continue, according to property consultants, Savills. In a statement issued today, Savills report that the value of hotel sales in Q1 2014 is 150% higher than this time last year. A total of 13 hotels worth almost €85m were sold in the first 3 months of the year. This compares to a total of 6, worth €34m, in Q1 2013.
Savills also report that, while the volume and value of transactions are significantly ahead of this time last year, the figures do not factor in the number of hotels that are also now sale agreed.
Tom Barrett, Head of Hotels and Leisure at Savills said, “It has been a solid start to the year for theIrish hotel property market with almost €150m of hotels sold or at the sale agreed stage”.
He continued, “Demand is certainly high – the recent IPO by Dalata Hotel Group Plc. and the emergence of funds targeting hotel acquisitions should continue to drive demand for hotels in prime locations. Combined with a steady flow of hotels coming for sale, we expect the volume and value of hotel transactions in 2014 to exceed the €200m of sales last year. Based on the first 3 months and our visibility of what is coming to market, we expect sales to exceed €300m this year.”
Significant hotel sales in Q1 included the Hilton Hotel Dublin for approx. €30m and the former Clarion Dublin Hotel Airport Hotel, and Doonbeg Golf Resort, both in the region of €15m. Dublin propertieslaunched in the last week include the Portmarnock Hotel and Golf Links (€20m) and the Pearse Hotel(€9m), with the Westin Hotel due to come to the market shortly.
The most recent overseas visitor numbers are also a positive indicator for the hotel property market according to Savills – there was an 11.3% increase in the total number of trips to Ireland between December 2013 and February 2014 compared to the same period 12 months earlier.
Barrett concluded, “2013 was a very good year for tourism with the number of visitors from our key markets in Britain and North America rising strongly. This growth has continued into 2014 and we expect it to have a positive influence on the hotel sector.”