Savills forecasts strong hotel sales

A continued rise in foreign visitors, further stock coming onto the market and ongoing public policy support is expected to lead to another strong year of transactional activity in the hotel sector, following a bumper year in 2013.

Leading commercial property consultants Savills yesterday noted that nearly 40 Irish hotels changed hands, last year, in deals worth €200mn.

It attributed much of the transaction performance to banks actively lending to investors again, economic recovery and a marked increase in domestic and in-bound tourist numbers.

It expects this year to benefit again from a strong transactional market, helped by more hotel stock being put up for sale and the extension of the 9% Vat rate for the hospitality sector and the abolition of the travel tax.

According to Dr John McCartney, director of research at Savills Ireland: “The Dublin market has maintained its status as the strongest performer in the Irish hotel sector and one of the best performing capital cities in Europe.”

He added: “International buyers continue to show interest in prime city centre hotels and trophy assets in regional locations, while domestic buyers are more focused on regional stock.

“This is a trend we expect to continue this year, as more stock comes to market,” he said.