Irelands H1 Hotels Transaction Values Exceed 2014 Totals
Phenomenal Volume of Hotel Transactions & Hotel Loan Portfolio Sales Recorded in the First Half of 2015
Ireland’s hotel investment transaction values have exceeded 2014 levels within the first six months of 2015, reports leading commercial real estate advisor, CBRE.
A total of 39 hotels have sold in the Irish market in the first six months of 2015, totaling more than €575 million, By comparison, hotel transaction values reached €341 million in 63 individual transactions during 2014 as a whole.
The H1 figures really reinforce the continuous appetite for hotel investment opportunities in Ireland. What is also striking is the transaction values do not include the number of hotels that have changed hands as part of loan portfolio sales in the period. The volume of activity is driven to a large extent by the amount of deleveraging that continues to be witnessed in the Irish market from the National Asset Management Agency (NAMA) and various lending institutions. The purchasers are encouraged by the quality of the assets that are coming to market and the fact that many continue to trade for below replacement cost, particularly those outside of Dublin.
“Just as witnessed in other sectors of the commercial property market over recent months, there is now clear evidence of an improvement in demand for provincial hotel properties with a good depth of both domestic and international buyers competing for assets, particularly those that are sensibly priced. The underlying economic backdrop and improving tourist activity is fuelling this sector of the market with buyers encouraged by improving performance and occupancy rates in many locations across the country during the last six month period.