After two banner years, Ireland's hotel transactions are flattening. But with Dublin racing to balance its hotel supply with demand, the country's hospitality sector remains strong.
Earlier this year we noted that the pace of hotel sales in Ireland declined following two years of record highs. According to Savills Ireland, €1 billion worth of hotel deals were recorded for 2015, while 2016 had €850 million in transactions. In comparison, according to Savills, there were €600 million worth of hotel transactions for 2017 across Ireland.
Notable sales this year include Dublin’s Gibson Hotel, which was acquired by the German-based Dekabank for more than the €87-million asking price. American businessman John Mullen completed the purchase of Carton House hotel and golf resort in Kildare earlier this month for €57 million and the MHL Hotel Collection purchased of the Radisson Blu hotel and spa in Galway for approximately €50 million. And despite diverting attention to hotel development, Dalata—Ireland’s largest hotel operator—spent more than €80 million acquiring the majority of the Clayton Cardiff Lane and Clayton Liffey Valley hotels.
There's also the recent sale of the Jurys Inn chain sale by U.S.-based private-equity group Lone Star to Swedish hotel group Pandox—a deal that could well account for a significant number of the total transactions in 2017.