Irish Hotel Market Set for Record-Breaking Year with €1 Billion in Sales
Ireland’s hotel market is experiencing a boom in sales, with transactions in 2024 expected to surpass €1 billion for the first time in nearly a decade. High-profile properties, including the Shelbourne Hotel and the Dean Hotel Group, have already changed hands this year, contributing to a surge in activity.
In the first ten months of the year alone, hotel sales have reached approximately €900 million, with experts predicting additional deals worth several hundred million euros before the year ends. “We would certainly expect another few hundred million euro worth of deals to complete before the year ends,” said Dan O’Connor, Head of Hotels and Living at JLL Ireland.
This year’s performance marks a significant increase from 2023, when only around 20 hotel deals, valued between €300 million and €350 million, were completed. Barry Noonan, Legal Director at DLA Piper, noted that the hotel sector has proven resilient amid a generally subdued commercial property market. Notably, the deals for the Shelbourne Hotel and the Dean Hotel Group, which includes eight properties such as The Dean and The Mayson, played a significant role in surpassing last year’s figures by April 2024.
The most notable sale this year was the Shelbourne Hotel, which was sold for €260 million. This was followed by the Radisson Hotel Dublin Airport, acquired by Dalata Hotel Group for €83 million. Other significant deals include the sale of the Hard Rock Hotel, the Radisson Blu St Helen’s Hotel, and Jacobs Inn Hostel.
Luxury hotels are increasingly central to this market. In 2023, the Park Hotel in Kenmare sold for €17 million, but 2024 has seen more high-end properties change hands. “Luxury hotels in Ireland seldom change hands,” said Paul Collins, Head of Hotels at CBRE. With just 39 five-star hotels in the country, these properties often attract fierce competition.
The surge in luxury hotel sales comes as global travel and wealth among high-net-worth individuals continue to rise. According to CBRE’s Luxury Real Estate 2024 report, the global population of millionaires has quadrupled since 2000, driving demand for more exclusive travel experiences. This trend is contributing to a growing interest in Ireland’s luxury hotel market.
Irish and international buyers alike have been active in the market. Dan O’Connor noted that while many smaller transactions are being handled by Irish families and high-net-worth individuals, larger deals, like the Shelbourne and Dean Hotel Group sales, have been dominated by international buyers.
As the year draws to a close, experts predict a slowdown in the number of high-value hotel transactions in 2025. However, the overall demand for hotel properties is expected to remain strong, with more moderate growth in the market. “The transaction market will remain active, but the overall value of the market will drop back from the €1 billion in 2024,” said Tom Barrett of Savills. Despite the expected decline, hotel sales are likely to continue as a resilient asset class, driven by strong trading performance and the ongoing appeal of Ireland as a destination for luxury travel.
