Hotel Sales in Ireland Surge Past €1 Billion in 2024

Hotel Sales in Ireland Surge Past €1 Billion in 2024

November 17, 2024 Catherine Williams - Chief Editor Business

Hotel sales in Ireland are experiencing significant growth. In 2024, the total value of hotel deals is expected to exceed €1 billion for the first time in nearly ten years. Over the first ten months of 2024, completed transactions reached approximately €900 million. Industry experts anticipate that several high-value deals will conclude by the end of the year.

Last year, hotel deals totaled between €300 million and €350 million, reflecting substantial growth in the market. Barry Noonan, a Legal Director at DLA Piper, noted that the hotel sector has shown resilience, especially amid quieter commercial property activities.

Prominent hotel sales this year include:

  • Shelbourne Hotel: Sold for €260 million.
  • Radisson Hotel Dublin Airport: Purchased by Dalata Hotel Group for €83 million.
  • Several others, including the Hard Rock Hotel and the Radisson Blu St Helen’s Hotel.

Luxury hotels are increasingly popular in 2024, with more five-star properties changing hands compared to the previous year, when only one five-star hotel was sold. The global rise in wealth has led to greater demand for luxurious accommodations.

Currently, only 39 out of 834 registered hotels in Ireland are five-star, leading to fierce competition when such properties come on the market. High demand from both Irish and international buyers is evident, with local families actively acquiring hotels.

Recent trends show that hotels are performing better than sectors like office and retail. According to Barry Noonan, strong domestic tourism, increased international visitors, and enhanced customer experiences have bolstered hotel performance. Hotels generate multiple revenue streams, making them attractive investments.

Trading prospects are improving, especially as North American connectivity from Dublin Airport grows. Major cities in the U.S. now have direct flights to Dublin, supporting luxury hotel demand.

Despite the optimistic outlook for 2024, transaction volumes may decline in 2025. Dan O’Connor from JLL explained that the limited number of available hotels makes it challenging to replicate this year’s activity. The market is expected to stabilize, with reasonable growth in both demand and supply.

In conclusion, the hotel market in Ireland is thriving, driven by strong demand, valuable sales, and the resilience of luxury properties. With ongoing interest from buyers, the market is set for continued activity.