Hotel sales soar 175% so far this year

The hotel market saw a huge increase in activity in the first half of this year, with almost three times as much spent on property sales.

Commercial property adviser CBRE yesterday released data which showed hotel property sales rose 175% in the first six months of 2014 compared with the same period last year. The spend totalled €132m — up from €48m in the opening half of 2013.

Some 27 hotel property sales have been concluded this year. There were 13 at this stage last year.

According to CBRE, an array of private investors and hotel operators have been active in the market over the first six months of the year, with local purchasers accounting for 75% of the hotel spend. Purchasers from the US, UK, and China accounted for 21% of the spend.

Notable transactions include the sale of the Hilton Hotel at Charlemont Place in Dublin for €30m; Doonbeg hotel and golf resort, Co Clare, for €15m; and the Dublin Airport Clarion Hotel which also sold for €15m.

Regional locations accounted for 64% of the activity, with a quarter of the total spend in Cork.

Among the hotels sold in Cork this year are the four-star Charleville Park Hotel, which was bought by Supermacs owner Pat McDonagh, and the Oriel House Hotel in Ballincollig which was bought by the family-owned Talbot Hotel Group for close to €8m.

CBRE believes the pace of activity in the hotel sector will continue this year, with a number of significant hotel properties and portfolios expected to be brought to the market.