Tuesday, June 10 14:09:36
The value of Irish hotel sales will exceed E350m by the end of 2014, according to property consultants, Savills Ireland.
In their latest report on the hotels market, Savills report that E115m worth of hotel sales have taken place so far this year and a further E107m are sale agreed.
Speaking ahead of today's Irish Hotel Investment Conference, Tom Barrett, Head of Savills Hotel and Leisure Division said, "At the half way point of the year, the value of hotels sold or sale agreed in Ireland has already exceeded the 2013 total of E200m. In addition, there is approximately E105m worth of hotels currently on the market, so by the end of the year, we firmly expect that sales will be well in excess of E350m".
Barrett says that the profile of buyers is varied and that there is currently a mix of domestic and overseas parties chasing opportunities in the market.
"This includes both investors from outside of the hotel industry and career hoteliers. The latter are motivated by the opportunities arising from improving trading conditions and buying at below cost. Some buyers see value in buying loss-making properties with significant turnaround potential."
Savills say that the revival of the tourism sector is driving the demand for hotel services. The number of overseas trips to Ireland by non-residents has increased by 13.8pc since 2010. Moreover, a record 1.16m North American tourists visited Ireland last year.
Dr John McCartney, Director of Research at Savills, expects this increase in activity to continue.
"The outlook for the second half of 2014 is positive. At the macroeconomic level, further growth in GNP and employment numbers is expected to support a continued recovery in domestic tourism. In addition, very low base interest rates should see the Euro, which has fallen significantly in recent months, continue to weaken against sterling and the dollar. This should help to underpin demand from non-euro area tourists coming to Ireland."