Market Beat Ireland - FY 2025

INVESTMENT ACTIVITY

2025 was a record year for investment transactions in the Irish market with a total of approximately €1.9 Billion in deals. The majority of this total came via the acquisition of the publicly listed Dalata Hotel Group (trading under the Clayton and Maldron Hotel brands) by a Scandinavian Consortium for a total of approximately €1.4 Billion, a deal which concluded during the second half of the year. Aside from this deal, other notable transactions in the second half of 2025 included the acquisitions of the Radisson Blu Hotel at Dublin Airport (€79m) and the Citywest Hotel Dublin (€148m).

PRIME YIELDS

Prime hotel yields in Ireland have remained stable, underpinned by strong operating performance and continued investor appetite. We expect yields to remain broadly stable in the near term, supported by limited prime stock and disciplined pricing expectations.

SUPPLY & DEMAND

The Irish economy performed strongly in 2025 - headline GDP grew by double digits year‑on‑year in Q4, although this was heavily distorted by export front‑loading. A clearer and more realistic barometer of changes in living standards is Modified Domestic Demand, which rose by 4.9% compared with Q4 2024, supported by solid growth in personal consumption (+2.9%). 

CSO data point to an improved leisure travel picture at the end of 2025. Overnight trips by overseas visitors increased through the second half of the year, reaching 6.4 million on a rolling 12‑month basis in December. Growth was strongest from Great Britain and North America, while demand from Continental Europe began to recover late in 2025. Average length of stay remained stable at around seven nights, although average daily spend eased over the past six months to €154 in December.

PERFORMANCE

Operational performance remains strong in the Irish market. Occupancy levels ranged between 77% and 83% on a rolling 12-month basis at the end of 2025 across all main hotel markets (Dublin, Cork, Galway, Limerick) with occupancy higher in most markets versus a year earlier. Room rates were slightly higher across all markets at the end of 2025 compared to 12 months earlier while RevPAR was also higher at the end of the year, particularly in the Dublin and Galway markets.