2017 Was A Strong Year For Hotel Sales In Ireland
New research from global property services firm Cushman & Wakefield has revealed that as result of three large deals in the final quarter of 2017, the total hotel investment turnover for Ireland last year amounted to almost €260 million.
However, despite the strong activity recorded in 2017, the total value of deals and volume of sales did not top the €720 million record set in 2016, when upwards of 50 deals were completed, as opposed to the 30 of last year. This was attributed to a slowing in the sale of distressed assets by the banks.
Significant deals highlighted by the research included the sale of Dublin's Gibson Hotel, the sale of Carton House in Co. Kildare, and the sale of the Knightsbrook Hotel of Trim, Co. Meath. The figures do not include unconventional sales such as the acquisition of Jurys Inn by Pandox and Fattal Hotels.
The remainder of the activity in 2017 primarily involved single asset transactions and off-market deals, with 63% in the €1 million to €10 million price band and 23% valuing below €1 million.
Cushman & Wakefield also noted there was a 20.6% increase in the number of hotels in development in Ireland by the end of December, with 13 new hotels currently under construction.