The value of hotel sales this year could exceed €600m or more than three times the level seen in 2013 when €200m worth of roperties changed hands,according to a report inn to-day;s 'Irish Independent'.
This year already 50 hotels have sold with a combined value of €450m and a further 10 have gone sale agreed with a combined value of around €150m.
American businessman John Malone has spent €119m this year on three hotels alone: The Westin on Dublin's Westmoreland St for which he is paying €72m as the deal also includes an adjoining AIB bank branch; €30m for the Hilton near Charlemont Luas Station and a further €17m. for the Strand Hotel, Limerick. Brehon Capital has been involved in three deals worth a combined €55m for: City West Hotel and Golf course in Saggart €30m; Killashee in Naas €13m; and Mount Juliet hotel and golf course in Co. Kilkenny, €12m.
The McGettigan Hotels group has also strengthened its Irish operation by acquisitions. These include the Maldron Hotel Citywest a three-star 129 bedroom hotel and adjoining Kingswood Country House for which it paid around €4m. This will bring to five the number of hotels in its Irish portfolio which include the Clanree Hotel in Letterkenny; the Ambassador in Cork; and the Millrace Hotel in Bunclody, Wexford.
Another factor underpinning capital value increases is the low level of new supply. The Irish Tourism Industry Confederation has signalled that Dublin needs a further 5,000 bedrooms or the equivalent of about 30 hotels.