Ireland suffers slump in hotel property sales

Ireland

18 hotel properties, totalling almost €75m (£66m), were sold off in Ireland during the first half of 2017.

A survey, conducted by commercial property consultant CBRE, revealed that the volume and value of hotel sales in the Irish market in the first half of 2017 has declined.

This data compares with 29 hotel sales totalling €136m (£120m) in the same period last year. Hotels sold as investments in the period were specifically excluded.

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“Transactional activity in the hotel sector in the first half of 2017, at €75m, is down year-on-year although momentum is now building after what was a slow start to the year,” said Lisa Keogh of CBRE Hotels Ireland. “The relatively low volume of transactions signed in H1 is largely attributable to a slow start and the scarcity of large-scale assets being released for sale compared to last year.

A number of assets that were offered for sale over recent months, including the Connemara Coast Hotel in Galway; The Knightsbrook Hotel in Trim, Co. Meath and the Athlone Springs Hotel in Athlone.

In total, there is currently up to €60m (£53m) of transactions under active negotiation. When combined with transaction volumes in the first half of the year and hotels that are due to be launched for sale over the coming months, it now looks likely that up to €250m (£220m) will be transacted in the Irish hotel sector during 2017.

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