Dalata Chief Predicts An End To Cheap Hotel Buys
Published on Mar 11 2015 10:21 AM in Hotel
Dalata chief executive Pat McCann has predicted that so-called "bargain basement" hotel sale deals will come to an end by the end of this year, as business improves in the sector. With about 100...
Dalata chief executive Pat McCann has predicted that so-called "bargain basement" hotel sale deals will come to an end by the end of this year, as business improves in the sector.
With about 100 hotels in Ireland in insolvency, many hotels have been snapped up at cheap prices by investors, a flurry of which came in 2014 with some 60 hotels sold.
However, McCann (pictured) has predicted a slowdown in these kind of deals, as the availability won't be there. Speaking to the Irish Independent about the remaining insolvent hotels, McCann said, "Whether we'll take advantage of that or not is another matter," adding "I reckon by the end of this year that the value we have seen won't be around in most cases."
The improving economy, corporate activity and visitor figures have contributed to a good year for the hotel sector, which saw its best year since 2007 last year.
Dalata has purchased a number hotels in the last year after becoming a public company, the latest of which was announced this week, an £18.5 million deal to secure the Holiday Inn in Belfast. They also took management control of the Ten Square Hotel in Belfast, after it entered administration early this year.
After its IPO on the stock market last year, the company raised €256 million, all of which has been allocated since. Along with the blockbuster deal that saw it take over the Moran Bewley's group of nine hotels, the firm has over purchased a number of other hotels around the country.