Hotel sales this year set to top €500m

The combined value of hotel sales is set to top €500m this year, and could exceed €1bn depending on certain sales being completed before year-end.

In an update on the sector, Savills Ireland has said that the second half of 2014 has seen an acceleration in hotel transaction activity and that the Irish tourism sector is set to further benefit from the growing British and US economies.

According to Tom Barrett, head of Savills Ireland’s hotels and leisure department: “At this point, it looks certain that the value of transactions will be in excess of €500m this year.

“However, that figure could potentially double if, for example, the Moran & Bewley’s hotel group — which owns 10 hotels in Ireland and the UK covering 2,627 rooms — is sold.

“Either way, 2014 will be a record year for hotel sales in the current market cycle.”

Savills foresees the continued uplift in the hotel market being driven by portfolio sales by the likes of Nama.

Mr Barrett said: “With Nama and Ulster Bank looking to accelerate disposals, portfolio sales have become more commonplace. Projects ‘Venue’, ‘Crystal’, and ‘Nadal’ alone will contain almost 20 Irish hotels in portfolio sales and they are attracting a range of buyers including existing hotel owners/operators, new market entrants, and institutional investors with a mix of Irish, UK, and US interests competing.”

Dalata Hotels’ €32m acquisition of the Clayton Hotel in Galway and Whites of Wexford — announced yesterday — forms part of the Ulster Bank Project Nadal portfolio sale.

Elsewhere, while CBRE was yet to formally confirm the sale yesterday, it is understood the four outstanding elements of the Capital Bars Group — Dublin pubs Café en-Seine, The George, Howl at the Moon, and The Dragon — have been bought by a consortium, headed by Setanta Sports-backers Danu Investment Partners, for €15m, around €3m more than the combined asset’s guide price.