Hospitality

Hotel transactions plummet amid drop in Dublin activity

Irish total hotel transactions fell to 30 per cent below the historical average amid a perilous period for the Irish investment property market

As transactions fell, occupancy rates continued to recover from Covid-19 restrictions, while the average daily rate of a hotel room was €180 - 27 per cent above 2019 prices.

Hotel occupancy rates and room prices rebounded to out-strip pre-pandemic levels in 2023, while transactions in the sector plummeted following fewer Dublin sales and no Dublin investment activity.

According to new data from Savills, Irish total hotel transactions fell to €350 million – 30 per cent below the historical average - as inflation and higher interest rates pushed yields up and reduced the value of investment properties.

This decline cones amid a turbulent period in the Irish investment property market. Annual returns on direct investment in Irish property experienced the largest decline in more than a decade, according to the most recent JLL Irish Property Index - down 9.7 per cent year-on-year in the third quarter of 2023.