JLL Ireland expect the Irish Hotel Investment Market to see a significant boost due to the recent announcement that Cathay Pacific will operate a new direct Dublin – Hong Kong flight four times per week from June 2018.
This will be Dublin Airports first ever direct route to the Asia-Pacific region also opening the pathways to connecting flights and locations such as Australia, Japan, mainland China and South-East Asia.
JLL’s most recent Global Hotel Industry report recently confirmed Dublin’s status as a ‘New World City’, and JLL believe this will be further enhanced with the new direct flights from Dublin to Hong Kong. Hotel occupancy, demand and revenue per available room are all expected to benefit, according to the investment management experts.
The Irish hotel market is already experiencing a significant influx in Asian hotel investors, particularly in Dublin. JLL has recently brokered two Dublin hotel transactions with Asian hotel buyers in the past 9 months, one with a major Asian REIT and the other with a private Asian hotelier.
Commenting on the announcement, Senior Vice President at JLL Hotels, Dan O’Connor said, "Today’s announcement provides Ireland with direct access to Hong Kong International Airport (HKIA), which handled over 70 million passengers last year. Located within five hours flying time of half of the world's population, this new Hong Kong route will not only bring new hotel guests, but also new hotel investors into the Irish market."
He added, "Asian property investors have a long history of making high profile and significant hotel investments, with the recent sale of the InterContinental Hong Kong for USD 938 million, also brokered by JLL, (pictured), marking one of the largest ever hotel sales in Asia. We expect further Asian capital sources to focus on potential Irish hotel investments after today’s announcement."