Almost €43 million invested in the Irish hotel market during first half of 2013
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UK buyers account for more than 58% of Irish hotel sales in H1 2013
Dublin, 15th July 2013 – Commercial property consultants CBRE today released final hotel spend data for the Irish market for the first half of 2013, which shows that there were 13 hotel transactions completed in Ireland during the first six months of 2013 with a total value of almost €43 million, with 10 transactions signed in the second quarter of 2013 alone. Considering that there are several hotel transactions agreed in recent weeks following the end of the quarter, several other transactions in negotiations and more hotel properties to be launched for sale in the Autumn, the volume of hotel transactions for this year as a whole looks set to beat last year’s figure of 24 Irish hotel sales concluded in 2012.
Some of the most notable hotel sales concluded in the first half of 2013 include the sale of the 5-star Ashford Castle in Co. Mayo, which sold to the UK-based Red Carnation Group for an estimated €18 million; Doonbeg Hotel and Golf Resort in Co. Clare, which sold to the US property investment firm South Street Partners; the 120 bed Clanree Hotel in Letterkenny, Co. Donegal, which had been guiding €1.6 million, which sold to a Dubai-based investment company and the Kincora Hall Hotel in Killaloe, Co. Clare, which sold for more than €500,000 to a local businessman.
Skewed by some of the larger hotel transactions that signed in the six month period, over 58% of the value of hotel sales in H1 2006 emanated from UK buyers. A further 26.8% of Irish hotel sales concluded in H1 2006 were purchased by US buyers with Irish buyers accounting for 8.3% of Irish hotel sales in the six-month period. This figure will alter as the year progresses and some of the more high-profile hotel sales currently in negotiations are concluded.
According to Paul Collins, Head of Hotels & Licensed for the UK & Ireland at CBRE, “It is now likely to be early Autumn before many other hotel properties are officially released for sale, which is disappointing as there is a scarcity of quality hotel properties on the market to meet the strong levels of demand, both from Irish and international buyers. With the Government’s generous capital gains tax waiver running out on December 31st this year, there is a limited window of opportunity to complete deals with purchasers who will need to have transactions completed by year-end”.
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