Increased Interest From International Investors In Irish Hotel Sector

By Robert McHugh
Increased Interest From International Investors In Irish Hotel Sector

Dublin is the eighth most attractive European city for hotel investment, according to the latest Deloitte 2023 European Hotel Industry Survey.

London was the most attractive European city for hotel investment and Lisbon the second. Amsterdam dropped two places to third and Paris remained in fourth place.

Global Survey

Deloitte’s 2023 European Hotel Industry survey took place between September and October 2023, taking views of a sample of senior figures from the hospitality industry including owners, operators, lenders, developers, and investors.

The survey also highlights that private equity continues to be the main source of equity capital for hotel acquisitions in Europe in 2024 (31%) while sovereign wealth funds have jumped by 10% to become the third largest source of equity capital for hotel acquisitions.

'Slowing Economic Activity'

“We can also learn where we expect this investment to come from, with more than half of respondents (56%) expecting hotel investment to be sourced from Europe," said Rebecca Robinson, director in corporate finance at Deloitte Ireland.


"Funding from the UK (20%) and North America (39%) declined in 2023 due to slowing economic activity, but the Middle East and North Africa are increasingly becoming important sources of investment, with nearly 40% expecting investment to come from the region, a 22% increase compared with 2021."

Contract To State

There were approximately 66,200 hotel rooms in the Republic of Ireland as of the fourth quarter 2023, as completions in the twelve months reached over 1,800 rooms.

According to Fáilte Ireland research, 12% of all registered tourism bed stock is under contract to the state.

'Rising Costs'

“Rising costs, higher interest rates, a shortage of skilled labour and increased staff costs are cited by most executives in the hospitality sector as the top risks they face in trying to grow this year," said Breda McEnaney, associate director in the Travel, Hospitality and Leisure advisory team at Deloitte Ireland.

"The top priorities this year are managing inflationary pressures, maintaining profitability, increasing cashflow, and hiring and retaining talent."