A study from property consultants, Savills Ireland has found that one third of Irish hotels have changed hands since 2011.
The research shows that the combined sales value over the five-year period was approximately €2.4bn. The highest number of hotel sales occurred in the larger cities of Dublin, Cork and Limerick.
Last year, over €850m of hotels traded, the second largest year of the period examined. Major sales include the former Doubletree by Hilton Burlington Road for €182m, The Gresham hotel for €91m, the Temple Bar Hotel for €55m and The Fitzpatrick Lifestyle Portfolio, consisting of the Morgan, Spencer and Beacon for a combined price of €150m.
Outside of Dublin the largest regional transactions included The Radisson Farnham Estate for over €27m and Lyrath Estate for €23m. With such an intense level of activity over the past five years, Savills expects the volume of sales to normalise in the coming years.
According to Tom Barrett, Head of Hotels & Leisure at Savills Ireland, compared to other markets, Ireland is unique in terms of the sheer volume of hotel sales in recent years. With continued strong performance in the Irish hotel market and the much talked about undersupply in Dublin, it makes a strong case for more bedrooms to meet demand he said.
It is estimated that new supply will remain small in 2017 with approx. 180 bedrooms. These are extensions to existing properties. The most significant is the addition of 73 bedrooms to the North Star Hotel on Amiens Street in Dublin 1.
In 2018, Savills expect approximately 1,500 net new bedrooms. Dalata, Irelands largest hotel operator, will open two new hotels, a Clayton on Charlemont St in Dublin 2 (178 bedrooms) and a Maldron on Kevin Street Upper in Dublin 8 (150 bedrooms). A 202 bedroom Aloft Hotel is under construction as part of a mixed use scheme in Dublin’s Liberties, an area that is benefiting from major urban regeneration. Oakmount (Paddy McKillen Jnr) will also open a 41 bedroom hotel in the trendy Ranelagh area of the city, which will bring roof top dining to Dublin 6 – similar to the Dean Hotel which opened in 2014.
The property consultants believe 2019 could see the delivery of in excess of 2,000 bedrooms in Dublin. Highlights include the new 402 bedroom Terminal 2 linked hotel at Dublin Airport and extensions to a number of existing Airport Hotels.
An interesting trend from the Savills report is the number of Dublin aparthotels in various stages of the development cycle. There are 10 potential new developments raging in size from 50 to 250 bedrooms. Many of these schemes secured their planning permission in 2016 which indicates an ongoing and active move towards expanding this previously limited section of the Dublin hospitality offering.
Commenting on the research, Head of Hotels & Leisure at Savills Ireland, Tom Barrett said, "Hotel development, like many areas of the property sector, stopped during the downturn, so there is a big element of catch up in Dublin. This, coupled with air traffic surpassing all previous records in 2016 – with further growth expected this year – means there is a real need for new bedroom stock in the right areas."
Source: www.businessworld.ie
