More ‘for sale’ signs forecast for hotels in 2013

An increase in the number of hotels coming up for sale is set to be one of the key trends of the property sector this year, according to international commercial property consultancy CBRE.

In its outlook for the year ahead, CBRE said yesterday it expects more hotel properties to be brought to the market and some of the Nama banks to begin offloading their hotel properties.

It added that there is real potential for international investors to enter the market and buy up such properties.

In November, Dublin’s largest hotel — The Burlington — was acquired by US venture capitalist, Blackstone for €67m.

“A busy year is in prospect in the Irish commercial property sector in 2013, as the wreckage is cleared away and we move into a recovery phase for the economy and — in turn — for the property market,” according to Marie Hunt, executive director and head of research at CBRE.

“However, the prospects for prime property are considerably better than secondary, with increased polarisation likely to be a key trend in 2013,” she added.

Ms Hunt said that properties will continue to come to the market “on a relatively controlled basis” over the course of this year, “with the deleveraging process continuing, but at a continued slow pace.

CBRE added that another trend will be an increase in the number of pub properties being offered for sale, and/or going into receivership.

“Fewer hotel properties are expected to go into receivership, this year, although there is likely to be an escalation in the number of enforcements in the pub sector,” the company said.