Some 15 hotel properties changed hands in Ireland during the second quarter of 2016, bringing the total number of hotel sales completed in the first half of the year to 29, totalling more than €136 million.
In its latest statistics on the volume and value of hotel sales in the Irish market, CBRE Ireland reports that "these figures represent a considerably higher volume of H1 spend than had been anticipated, particularly when you consider that it excludes some of the larger transactions that have dominated the headlines in the last few months including the 4 star Gresham Hotel in Dublin city centre, the Doubletree in Dublin 4 and the Lyrath Estate in Kilkenny, all of which are now at advanced bidder stage but have yet to conclude."
The spending in the first half of the year also excludes many hotels that have changed hands as part of recent loan sales such as Projects Ruby and Emerald, which were acquired by Oaktree/CR in recent weeks.
According to CBRE, there is approximately €500 million of hotel transactions currently in negotiations, which suggests that annual transaction volumes will match, if not exceed, last year’s record.
"The depth of buyers and strong pricing achieved for the hotels that have traded in recent months is encourging other willing sellers to bring their properties to the market. With many of the prices that have been guided for hotel assets in the first half of the year having been comfortably exceeded, we expect to see more hotel properties being launched for sale around the country over the course of the coming months to satisfy buyer appetite," said CBRE.
According the firm's research, there is potential for the delivery of up to 9,000 additional hotel rooms in Dublin if all of the schemes in the planning process are delivered.
"Against this backdrop, we expect to see a number of sites that have the benefit of planning permission for hotel projects to be offered for sale over the coming months.
"In the short term, the drop in the value of sterling following the surprise Brexit vote has the potential to have severe repurcussions for the hotel and tourism sector in Ireland considering that more than 40% of tourist activity in Ireland each year is typically generated from visitors from the UK and Northern Ireland."
Meanwhile, CBRE stated that while a number of Dublin pubs have recently been launched for sale, the stock of properties coming to the market in the first half of the year was somewhat less than had been anticipated.
"This is expected to change in the second half of the year as licensed premises that traded as part of loan portfolios are brought to the market.
"Demand for well-located pub premises remains strong with evidence of increased appetite for pubs in suburban as well as city centre locations over recent months.
"The trading performance of pubs has improved considerably and has undoubtedly been boosted in recent weeks by good weather and the Euro 2016 tournament. Just as in the hotel sector, there are concerns about the potential impact the drop in the value of Sterling will have for licensed premises."