Hotel deals tops €1.7bn in 2025 driven by Dalata takeover

A total of 66 hotels in Ireland changed hands during 2025, more than double the number sold in 2019

Ruby Molly hotel in Dublin was sold for €86.5m.

The value of hotel sale transactions in Ireland hit record levels during 2025 exceeding €1.7bn driven primarily by the acquisition of hotel group Dalata, a new report by estate agents Savills Ireland shows.

In total, 66 hotels in Ireland changed hands during 2025, more than double the number sold in 2019.

During the summer last year, it was announced that a consortium of nordic hotel companies would takeover Irish hotel company Dalata in a deal worth €1.4bn.

Approximately €1bn of that figure relating to Irish hotel assets.

Dalata operated 56 hotels across Ireland, the UK, and continental Europe.

Savills Ireland said the transaction marked the largest hotel deal ever completed in Ireland and significantly altered market expectations, which had initially forecast annual volumes of €500m to €600m.

The estate agent said investor confidence improved over the course of the year as interest rates eased “supporting renewed activity following a period of limited transactions”.

This was underscored by the €86.5m sale of the Ruby Molly Hotel in Dublin, the first Dublin hotel investment transaction since 2022.

Conor Clare of Savills Hotels and Leisure said the scale of the Dalata transaction, combined with a return of institutional capital and consistently strong operating performance, has “fundamentally reinforced investor confidence in the sector”.

While development costs and operational pressures remain, the outlook for both Dublin and regional markets is positive, underpinned by demand, limited supply in key locations and Ireland’s continued appeal as a tourism destination.” 

The report said that hotel trading conditions remained broadly stable throughout the year. Dublin hotels achieved average occupancy of 83%, with average daily rates reaching €175, representing a 23% increase on pre-pandemic levels.

“Outside Dublin, hotel performance in regional Ireland continued to strengthen. Limited new supply combined with strong domestic demand contributed to significant rate growth, with average daily rates increasing by 60% in Limerick, 51% in Galway and 38% in Cork between 2019 and 2025,” Savills Ireland said.

Hotel development activity remained very concentrated in Dublin last year. The report noted that there were nearly 1,000 new hotel bedrooms delivered in Dublin in 2025 with a further 1,000 to be added over the course of this year.