Hotel sales top pre-recession levels as turnaround continues unabated

The market for hotel purchases has never been busier than in the first nine months of the year, as sales top even pre-recession levels, according to a new report.

The latest analysis on the sector from property advisers CBRE shows the dramatic turnaround in the market has continued unabated over the summer and is likely to be maintained in the final quarter of the year.

To date, 45 hotels have been sold in Ireland in deals worth a combined €280m; a net transaction value of €6.2m.

In comparison, 33 hotel sales were completed in the country in the whole of last year. This year’s figures show the continued annual growth in the sector seen since the market crashed in 2009.

Commenting on the analysis, CBRE surveyor, Lisa Keogh illustrated the extent to which the market has picked up in the last number of years.

“There were only two hotels sold in the entire country in 2009 and only three the following year in 2010 so this marks a very significant turnaround,” said Ms Keogh.

While the volume of transactions this year has surpassed that of 2006, the total hotel spend in the market pales in significance to those pre-bust days.

In 2006, 32 hotel transactions — including many land sales — were completed for a combined cost in excess of €1bn, meaning each sale totalled an average of €31.25m.

The imminent cessation of the Capital Gains Tax waiver in the upcoming budget is expected to add to demand.

CBRE’s report on the first six months of the year highlighted spending in regional locations as particularly strong, with Cork hotels accounting for 64% of the activity in the sector.

Among the hotels sold in Cork this year are the four-star Charleville Park Hotel and the Oriel House in Ballincollig, Co Cork.