Industry Update
External Article 5 December 2018

2018 Has Been A "Normal" Year For Hotel Transactions

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Hospitality Ireland

Despite average room rates in Dublin reaching a record €155.75 while occupancy rates reached 89.6% and revenue per available room (RevPAR) rose 9.7% to €139.51, 2018 has reportedly been a "normal" year for hotel transactions in the wake of several years of strong turnover in the hotel investment market from distressed Nama-driven sales.

According to The Irish Times, director of hotels and leisure at Savills Tom Barrett stated, "International funds and domestic investors are still chasing hotel assets. So there is a good balance of buyers. The recently announced Budget 2019 increase in the VAT rate on the hospitality sector has put pressure on the industry and Brexit is adding plenty more uncertainty. But the outlook is stable for hotels."

"Drying Up Of Distressed Asset Sales"

Meanwhile, Cushman & Wakefield senior economist Deirdre O'Reilly said, "Investment in Irish hotels amounted to €36.5 million in the third quarter of 2018, which brings the nine-month turnover total to €79.3 million, across just eight transactions. Compared to the same period of 2017, this is a 10% fall in the value of sales recorded. This excludes any unconventional hotel sales such as company sales, loan sales and refinances.

Read the full article at hospitality ireland

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