Irish Hotel Market Heating Up As Summer Arrives
Commercial property specialists CBRE believe the hotel market in Ireland is steadily improving as summer arrives following what was a very quiet first quarter, with very few hotels formally launched for sale.
Only seven hotels, with a total value of approximately €26 million, traded in the first quarter of 2017.
However, according to CBRE, this situation has now improved with several larger hotels launched for sale in recent weeks.
Negotiations are expected to conclude shortly on the sale of the 4-star Mount Wolesley Resort in Carlow; the Athlone Springs in Athlone, Co. Westmeath, which is guiding excess €3.5 million; the Abbey Hotel on Middle Abbey Street, Dublin 1, which is guiding €3.5 million, and the Abrae Court Guesthouse in Rathgar, Dublin 6, which is guiding excess €1.5 million.
Other hotels that have recently come to the market include the Knightsbrook Hotel in Trim, Co. Meath, which is guiding €18 million; the Connemara Coast Hotel in Furbo, Co. Galway, which is guiding €12 million; the Strand Hotel & Bar in Bray, Co. Wicklow, which is guiding €2.2 million.
CBRE added that An Bord Pleanála recently granted planning permission to JD Wetherspoon for a 98-bed hotel and super pub on Camden Street in Dublin city centre, while planning was also granted for a new 234 bed hotel at Dean Street in Dublin 8. A new 249 bed hotel is planned by the Kajani family for River House on Chancery Street, Dublin 7. Meanwhile, Tetrarch have lodged planning for a mixed-use development at Townsend Street in Dublin 2, which will include two hotel developments (a 393 bed hotel and a 202 bed aparthotel) having also recently applied to develop 30 additional bedrooms at The Marker Hotel at Grand Canal Dock.
Outside of Dublin city centre, Gannon Properties recently lodged planning permission to develop a new 209 bed hotel at Clongriffin in north Dublin.
According CBRE research, there are now 9,075 hotel beds at various stages of the planning process in the Greater Dublin Area. It predicts that 5,700 of these are due for completion between 2017 and 2021.