€500m in hotel deals now in negotiation
Published 07/07/2016 | 02:30
CBRE has warned that the drop in the value of sterling against the euro following the UK electorate's decision to vote for Brexit has "the potential to have severe repercussions for the hotel and tourism sector in Ireland", given its dependence on the UK and Northern Ireland for tourist activity.
Despite that threat, CBRE's Hotel Division expects annual transaction volumes for the sale of hotel properties to meet and quite possibly surpass the record of €710m set in 2015.
With some €500m in hotel sales currently in negotiation, according to Lisa Keogh of CBRE Hotels Ireland, there is a distinct chance of last year's number being eclipsed.
The first half of 2016 has seen 29 hotel sales totalling more than €136m completed. That figure does not include the sales of the Gresham Hotel in Dublin, the DoubleTree in Dublin 4 or the Lyrath Estate in Kilkenny.
All three sales are currently at the advanced bidder stage, but have yet to conclude.
Nor does it include hotels sold as part of Projects Ruby and Emerald, which were acquired recently by Oaktree Capital in partnership with Alanis Capital and CR Investment Management.
Sales recently agreed include: the Village at Lyons in Kildare for close to €6m; Tulfarris Hotel in Blessington, Co. Wicklow, for over €8m and the Hilton Dublin Airport Hotel for over €10m.