Irish Hotel Market - Sherry FitzGerald
Transcription
Irish Hotel Market - Sherry FitzGerald
Irish Hotel Market End of Year Review 2014 Outlook 2015 Introduction Following a strong opening half to 2014 for hotel transactions, momentum accelerated during the latter half of the year. The volume of hotel sales soared in the third quarter in particular, bringing total sales in the year as a whole to €555 million across 60 hotels. A strong resurgence in the tourism industry in Ireland was witnessed in 2014, driving demand for hotel services. The total number of overseas trips in the year reached 7.6 million, an annual increase of 8.9%, while projected total tourism revenue is expected to reach €6.5 billion, representing an annual increase of 10%. Demand for Irish hotels was strongest in Dublin, accounting for 59% of hotel sales in the twelve month period. This was followed by the South West and the South East. Transaction activity, however, was dominated by small to medium assets, with 75% of overall sales sub €10 million in value. 2014 saw demand for hotels strongest among foreign buyers, accounting for over half of overall transaction activity. Overseas hotel transactions were dominated by US buyers with an 87% share of the international sales. Looking to 2015, activity in the Irish hotel market is expected to continue, with notably €102 million of hotel transactions sale agreed at the end of 2014. 2 Irish Hotel Market Economic Overview and Tourism Performance The Irish economy is now well in recovery mode, expanding notably in 2014 with strong performances in both exports and investments and an expected resurgence in domestic demand for the end of the year. The Department of Finance projects that GDP growth for 2014 will come in at 4.7%, and 3.9% in 2015, with strong contributions from both domestic demand and exports. GNP is expected to grow by 4.1% in 2014 and 3.6% in 2015. Meanwhile, following a prolonged period of decline, personal consumption is expected to have returned to annual growth in 2014 on the back of improved employment levels and consumer sentiment and this is forecast to continue for 2015 and 2016. Consumer sentiment in Ireland increased notably in 2014, reflecting an uplift in consumers’ confidence with regard to their current and future finances. The latest available KBC Bank Ireland/ESRI Consumer Sentiment Index figures for the month of January 2015 revealed that the sentiment reached its highest point in nine years, 101.1, up over 10 points on December’s reading and the first time it exceeded 100 since February 2006. Furthermore, the 3-month moving average increased from 87.1 in A weaker euro December to 92.3 in January. makes Ireland a very attractive location as However, performance in the a tourist destination Eurozone economy remains subdued, with annual growth for 2014 preliminarily estimated to be 0.8% and inflation levels remaining negative, forcing the European Central Bank to roll out a quantitative easing programme of bond buying to stimulate growth in the Eurozone. That said, low interest rates means that Eurozone economies are more attractive in terms of investment opportunities. A core feature of the economic recovery in Ireland in 2014 was the significant reduction in unemployment levels. The latest CSO Quarterly National Household Survey saw an annual increase in employment of 1.5%, or 29,100, in the year to the fourth quarter of 2014, bringing total employment to 1.94 million. Employment levels rose by 0.5% compared to the previous quarter, representing its 9th consecutive quarterly increase. Furthermore, the seasonally adjusted standardised unemployment rate fell notably to 10.4% in the final quarter, from 11.1% the previous quarter, the first time standing below 11% since quarter 1, 2009. It has been falling steadily since the February 2012 crisis high of 15.1%. As the numbers in work are increasing, so too is employment in the tourism industry; the latest available CSO figures reveal that the numbers employed in the Accommodation and Food Service Activities Sector in the fourth quarter of the year was 138,400, an increase of 1,400 jobs when compared with the same period in 2013. Job creation has proven to be a clear result of the reduced VAT levels for goods and services in the hospitality industry, providing almost 1 in 3 net new jobs since its introduction, and this is set to continue following the Budget 2015 announcement that this measure will be retained for another year. Furthermore, the increasing number of hotels previously closed, under refurbishment and set to reopen, together with expanding hospitality companies such as Airbnb, should aid additional job creation this year. 3 Irish Hotel Market The total number of overseas trips to Ireland during the period October to December 2014 increased by 7.3%, or 114,800, to 1.69 million visitors compared to the same period in 2013. This brings the total number of overseas trips in the year to 7.6 million, an annual increase of 8.9% and the highest level since 2008. The UK, Ireland’s largest tourist market, accounted for 42% of all overseas visitors in the year, while residents of Europe accounted for 35% and the USA and Canada, 18%. On an annual basis, trips by residents of the USA and Canada increased by 14.7% while trips by UK residents increased by 8%. Furthermore, a significantly weaker euro at present makes Ireland a very attractive location as a tourist destination. Fáilte Ireland projects an increase of 6% in overseas tourists in 2015. The latest CSO figures available on domestic trips taken by Irish residents reveal that in the nine months to September 2014, trips taken increased by 2.7% to approximately 5.7 million when compared to the same period twelve months earlier, with the estimated number of trips for the year expected to come in at 7.3 million. Furthermore, 40% of all domestic visitors in the nine month period stayed in hotel accommodation, highlighting the importance of hotels for the domestic tourism market. In terms of tourism revenue for 2014, spending by overseas tourists reached €2.8 billion in the first 9 months of the year, an annual increase of 9.2%, and is expected to come in at €5 billion for the year. Domestically, revenue from trips within Ireland reached €1.14 billion in the first nine months, an annual rise of 4.4%, and is estimated to reach almost €1.5 billion for the year. Combining overseas and domestic visits to Ireland for the year brings projected total tourism revenue to arrive at approximately €6.5 billion, an increase of 10% compared to 2013. According to Fáilte Ireland, holidaymakers in Ireland are increasingly finding value for money; of those surveyed, 60% believed they got value for money in their vacation in 2014, compared with just 29% in 2009. Irish Hotel Market Following a number of challenging years for the Irish hotel market, the market stabilised in 2012 and strengthened in 2013, underpinned by an array of both domestic and international investors showing strong interest in Irish hotels. While strong performance was witnessed in the opening half of 2014, momentum in the Irish hotel market gathered speed in the latter half, boosted significantly by the volume of transactions in the third quarter. Transaction activity reached €555 million (excluding loan sales) in 2014 as a whole, over double the level of activity recorded in 2013. Approximately €182 million worth of hotel sales transacted in the first half of the year, however, activity strengthened in the latter half. The volume of spend in the six months to December stood at €373 million and accounted for two-thirds of overall activity. Hotel sales in the latter half of 2014 accounted for over two-thirds of overall activity in the year Approximately 60 hotel transactions took place in the year, an uplift of approximately 50% on the number of transactions in 2013 and the most active year for hotel sales since the height of the market. This is also in stark contrast to the mere 2 hotels sold in 2009. The most significant transaction in the year as a whole was The Shelbourne, a 5 star hotel in Dublin 2 to Kennedy Wilson for €120 million, following the group’s acquisition of loans attached to the same hotel earlier in the year. Notably, one deal has the ability to skew results and this standout deal boosted activity in quarter three and accounted for 22% of the overall volume of transactions in 2014. Kennedy Wilson was a prominent player in the Irish hotel market in 2014, also purchasing the 4 star Portmarnock Hotel & Golf Links for €29.8 million earlier in the year. A core feature of the market in 2014 was the rising number of portfolios brought to the market by NAMA and other Irish banks, giving investors the opportunity to acquire large hotels either as individual lots as an entire portfolio. “Project Venue” which consists of 3 hotels including The Malton, a 4 star hotel in Killarney, which was sold for €18.1 million to Cork hotelier Joe Scally in quarter four, the 4 star Kilkenny Ormonde Hotel which was acquired by Connaught and Whitehall Capital Ltd. for €11.5 million in the final quarter, and the 3 star Gresham Metropole in Cork which was still available at the end of the year. Ulster Bank brought “Project Nadal” to the market during the year also, a portfolio of 8 hotels including the 4 star Clayton Hotel, Co. Galway, and 4 star Whites of Wexford, both sold to Dalata Hotel Group for a combined value of €31.7 million in the final quarter. The portfolio also included the 4 star Dunboyne Castle Hotel & Spa in Co. Meath, which was sold for €8 million. The remaining Irish hotels in the portfolio consisted of loan sales. NAMA’s “Project Crystal” is also a key portfolio on the market for 2015, while a number of further portfolios are expected to appear in the year ahead, particularly outside Dublin, as NAMA continues to exceed its targets and increase its disposal of Irish property. Figure 1 Hotel Sales, 2014 Other notable deals in 2014 included The Westin, a 5 star hotel in Dublin 2, and the 4 star Hilton Dublin, Charlemont Place, Dublin 2, which sold for approximately €60 million and €30 million respectively to US investor John Malone. Furthermore, the 4 star Citywest Hotel & Golf Resort was acquired by Brehon Capital Partners (BCP) for €29 million. BCP has considerably increased its stock of Irish hotels this year, also purchasing 4 star Mount Juliet in Co. Kilkenny for a reported €15 million, Killashee House Hotel & Villa in Co. Kildare for €13 million and Mount Wolseley Hotel, Spa & Golf Resort in Co. Carlow for €7.5 million. BCP’s interest does not lie solely in Irish hotels, also purchasing Jacob’s Inn Hostel in Dublin 1 for approximately €7 million, reflecting the investor’s interest in opportunities across a number of sectors. The largest deal outside of Dublin was the sale of the 4 star Limerick Strand Hotel in the final quarter for over €20 million to John Malone, adding to his significant purchases earlier in the year of The Westin and the Hilton Charlemont Place, considerably growing the investor’s interest in both the Dublin and regional hotels markets in Ireland. 4 Irish Hotel Market Source: DTZ Sherry FitzGerald Research Irish Hotel Market Irish Hotel Market A number of significant off-market transactions took place in the year; these include the 5 star Aghadoe Heights in Co. Kerry and 4 star Mount Juliet in Co. Kilkenny. Notably the 3 star Maldron Hotel Parnell Square, Dublin 1, was transacted in the final quarter of the year and features in the top ten deals. Activity is expected to continue in 2015, with approximately €102 million of hotels sale agreed at the end of quarter four and due to close in the opening half of 2015. Top hotels sale agreed include the 5 star Adare Manor Hotel in Co. Limerick which was sale agreed for a reported €30 million, Top hotels sale agreed include 5 star Adare Manor in Loan also increasingly Loansales salesininthe theIrish Irishhotel hotelmarket marketwere were also increasingly the 3 star Temple Bar Hotel,the Fleet Street, Dublin 2, Hotel sale agreed Limerick, which was sale agreed forthe a reported €30Hotel million, prevalent that is is expected to to Co.for prevalentin inIreland Irelandinin2014 2014and andare area afeature feature that expected approximately €28 million, and 4 star Pillo & Spa thein3Galway star Temple Hotel, Street, 2, sale agreed continue attached to The Shelbourne, separate continueinto into2015. 2015.Loans As well as the loan sale of The Shelbourne, whichBar was sale Fleet agreed for aDublin reported €10.5 million. At for approximately €28 million, and the 4 star Pillo Hotel and from the €120 million asset sale, were transacted in 2014 as well loans attached to The Mercantile in Dublin 2 were also sold in the least twenty more hotels were sale agreed at the end of Spa the year in Galway wasmillion. sale agreed for a reported €10.5 million. At as loans belonged to Hilton The Mercantile in Dublin 2.the Moreover, theBlu year. Moreover, the Hotel Kilmainham, Radisson for lesswhich than €10 Hilton Hotel Kilmainham, the Radisson Blu Hotel Golden Lane, thethe least twenty more hotels were sale agreed at the end of the year Hotel Golden Lane, the Radisson Blu Hotel Dublin Airport, and which were brought to the market in 2014 and still forTop lesshotels than €10 million. Radisson Blu Hotel Dublin Airport, and the Arlington Hotel were Arlington Hotel were all loan sale transactions in Ulster Bank’s all loan sale transactions in Ulster Bank’s “Project Nadal”. available at the end of December include the 3 star Premier Inn “Project Nadal”. Top hotels which were brought to the market in 2014 and still Dublin Airport, guiding €9.6 million; 4 star Waterford Castle available at the end of December include the 3 star Premier Inn The remarkable uplift witnessed in the second half of the year The remarkable uplift witnessed in the second half of the year Hotel & Golf Resort, guiding €4.5 million; 3 star Hotel Clybaun Dublin Airport, guiding €9.6 million; 4 star Waterford Castle was likely enticed by the Capital Gains Tax (CGT) incentive which was likely enticed by the Capital Gains Tax (CGT) incentive which Hotel in Co. Galway, guiding €2.4 million; Westlodge Hotel & Leisure and Golf Resort, guiding €4.5 million; 3 star Hotel Clybaun was not extended beyond 31 December 2014. The phasing out was not extended beyond 31 December 2014. The phasing out Centre in West Cork, guiding €2Westlodge million andHotel Gallaghers Hotel in in Co. Galway, guiding €2.4 million; and Leisure of this relief saw purchasers keen to close sales before the end of 2014. this relief saw purchasers keentotoreduce close sales beforeofthe end Letterkenny, Co. Donegal, guiding million. Centre in West Cork, guiding €2 million€1and Gallaghers Hotel in of However, this is not likely the outturn hotel of 2014. However, thisisisexpected not likelyto toremain reduceasthe outturn of hotel Letterkenny, Co. Donegal, guiding €1 million. sales for 2015; activity debt holders Both domestic and international interest remain strong while sales for 2015; activity is expected to remainasset as debt holders further deleverage. Moreover, non-distressed holders are liquidity will and playinternational a key role ininterest influencing hotel saleswhile for the year Both domestic remain strong further deleverage. Moreover, non-distressed asset holders now beginning to bring their hotels to the market, as prices areare ahead with an improving availability of finance for both existing liquidity will play a key role in influencing hotel sales for the year now beginning bring their hotels to theinmarket, as prices are rebounding and to there is value to be found hotels again. Hotel and with new an investors entering the market. ahead improving availability of finance for both existing rebounding there is value totobe found in hotels again. Hotel prices shouldand therefore continue strengthen in 2015. and new investors entering the market. prices should therefore continue to strengthen in 2015. Activity is expected to continue in 2015, with approximately €102 million of hotels sale agreed at the end of quarter four and due to close in the opening half of 2015. Table 1 Table 1 Top 10 Hotel Transactions (Sold), 2014 Top 10 Hotel Transactions (Sold), 2014 Hotel County Star Rating Price (Approx.) Quarter Price per Room (Approx.) Purchaser Origin Type of Sale THE SHELBOURNE Dublin 5 Star €120m Q3 2014 €452,830 US Trading Asset THE WESTIN Dublin 5 Star €60m Q3 2014 €380,368 US Investment HILTON DUBLIN Dublin 4 Star €30m Q1 2014 €155,400 US Trading Asset PORTMARNOCK HOTEL & GOLF LINKS Dublin 4 Star €29.8m Q2 2014 €217,391 US Trading Asset CITYWEST HOTEL & GOLF RESORT Dublin 4 Star €29m Q3 2014 €37,468 Irish Trading Asset LIMERICK STRAND HOTEL Limerick 4 Star €20m Q4 2014 €108,696 US Trading Asset THE MALTON Kerry 4 Star €18.1m Q4 2014 €105,233 Irish Trading Asset CLAYTON HOTEL Galway 4 Star €17m Q4 2014 €61,538 Irish Trading Asset MALDRON HOTEL PARNELL SQUARE Dublin 3 Star Off-market Q2 2014 - Irish Trading Asset WHITES OF WEXFORD Wexford 4 Star €14.5m Q4 2014 €63,694 Irish Trading Asset Source: DTZ Sherry FitzGerald Research Source: DTZ Sherry FitzGerald Research 5 5 Irish Irish Hotel HotelMarket MarketEnd of Year Review 2014 / Outlook 2015 Performance of Irish Hotels A resurging tourism market coupled with improved trading conditions among hoteliers is making the Irish hotel market a promising one in which to invest. The shortage of hotel rooms available, particularly in the capital, means that room rates are spiking at present and will continue to do so as long as there is a shortage of rooms. Hotel occupancy in Ireland has returned to pre-crash levels. ARRs (Average Room Rate) of Irish hotels have risen successively since 2011, while occupancy levels and RevPARs (Revenue per available room) have risen each year since 2010. According to Crowe Horwath’s 2014 Annual Irish Hotel Industry Survey, occupancy levels increased on an annual basis by 2.1% while ARR levels increased by 3.7% to €77.49. RevPAR increased by 7.1% to stand at €51.07. That said, ARR levels still remain low by historical comparisons and are significantly below the average room rate at the peak of 2007 which stood at €97.69. Notably, total RevPAR has risen by a significant 18% since 2011. 6 Irish Hotel Market ARRs and occupancy levels in Dublin city hotels are outperforming that of the rest of the country, reflecting the limited supply of hotel rooms available in the capital to meet current demand. According to PwC’s European Cities Hotel Forecast 2015 and 2016, occupancy levels in Dublin have surpassed pre-recession levels, rising from 76% in 2013 to 78.3% in 2014 and are forecast to reach 80% in 2015. Furthermore, Dublin is ranked in the top five for European cities’ hotel occupancy levels. ARR in Dublin increased by 8.5% to stand at €95, from €88 in 2013, and is forecast to reach over €100 by 2015. Furthermore, RevPAR in Dublin increased notably by 11.1%, from €67 in 2013 to €75 in 2014, and is forecast to rise to €81 and €88 in 2015 and 2016 respectively. Investment by Location An analysis of investment in hotels by location reveals that Dublin was the most sought-after region in 2014 accounting for 59% of the total spend in the year. Figure 2 Hotel Sales by Location, 2014 Outside of Dublin, activity was strongest in the South West and the South East, accounting for 11% and 10% of the total spend respectively, while 8% of sales were in the Shannon, 7% in the East & Midlands, 4% in the West and 1% in the North West. That said, the 59% proportion in Dublin accounts for just 12 out of the 60 hotel sales, emphasising the higher valued hotels sold in the capital compared with the rest of the country, while in the South West, 11 sales were transacted in the year which only represents 11% of the total spend, representing the larger number of smaller lot size hotels sold. Notably, 75% of the number of hotels sold in the year were sub €10 million in value, while 15% were €10 - €20 million, 7% were €20 - €50 million and just 3% were greater than €50 million. The price differentiation between the best quality hotels outside Dublin and mid-classification hotels within Dublin became very evident in 2014; investors are willing to pay a premium for well-located 3 and 4 star hotels in Dublin city centre, while 5 star hotels outside of Dublin are being acquired for a price per room that is significantly less. Source: DTZ Sherry FitzGerald Research Figure 3 Hotel Sales by Lot Size €m, 2014 Source: DTZ Sherry FitzGerald Research 7 Irish Hotel Market Investment by Star Rating Of the 60 hotels transacted in the twelve months to December 2014, approximately 12% were 5 star, while 77% were either 3 or 4 star. This suggests that the demand for well-located and opportunistic 3 and 4 star hotels was driving activity in the hotel market in the year. Notably, the majority of hotels placed on the market during 2014 by NAMA and other banks were broadly 3 and 4 star hotels. A better quality 5 star hotel is more often transacted as a single sale. When analysing hotel sales by value however, 39% were 5 star, while 59% comprised 4 star and 3 star hotels combined. Figure 4 Figure 5 Hotel Sales Volume by Star Rating, 2014 Hotel Sales Value by Star Rating, 2014 Source: DTZ Sherry FitzGerald Research Source: DTZ Sherry FitzGerald Research 8 Irish Hotel Market Investor Type Both international and domestic investors are motivated by the recovering tourism sector in Ireland while rising occupancy levels, particularly in Dublin, are making the Irish hotel market an attractive one in which to invest. Figure 6 Domestic vs. International Buyers, 2014 Hotel purchasers are increasingly more motivated by the longer term trading potential and the EBIDA (Earnings before Interest, Depreciation, and Amortization) of an asset, as opposed to its appreciation in value. Furthermore, Ireland’s recognition for resilience in adhering to austerity has strengthened investor Domestic buyers sentiment within the overall dominated in the fourth quarter of the Irish economy. year, accounting for 75% of sales in the three month period Demand for Irish hotels from international investors increased notably in 2014, purchasing approximately 55% of the market share in the twelve months to December, while domestic purchasers accounted for approximately 43%. That said, domestic buyers were more dominant in the final quarter of the year, representing 75% of sales in the three month period. Domestic sales in the year represented 39 hotel transactions and only two of which were 5 star, indicating that Irish buyers were most active purchasing small to medium hotel assets. Repeat domestic buyers are also becoming a prominent feature in the market. Source: DTZ Sherry FitzGerald Research Figure 7 Origin of International Buyers, 2014 An analysis of the proportion of foreign buyers in the year saw the majority of transactions by US buyers, accounting for an 87% share of the foreign spend and approximately €275 million of the hotel assets purchased in 2014, while European buyers comprised 5% and Asian, 3%. It is envisaged that, based on an increasing number of enquires in recent months, investors from China will make a larger appearance in the Irish hotel market in 2015. The falling value of the euro, meanwhile, should increase the activity coming from overseas. Source: DTZ Sherry FitzGerald Research 9 Irish Hotel Market Asset Type An analysis of the type of asset sales in the hotel market in the year reveals that trading asset sales were the most prominent in the year accounting for 84% of the total volume, while 11% were investment sales and 4%, asset sales. Figure 8 Asset Type, 2014 That said, one large deal can skew results as the sale of The Westin for approximately €60 million accounted for the entire value of investment sales in 2014. On the contrary, trading asset sales represented 49 out of the 60 hotels sold. Source: DTZ Sherry FitzGerald Research New Development Development activity has re-emerged in the Irish hotel market albeit at a moderate scale; the 4 star, 52-bedroom, Dean Hotel opened in Dublin in 2014 and marked the first new hotel in Ireland since The Marker Hotel in 2013. However, the shortage in supply of hotel rooms available in Ireland has spiked interest in hotel development and extensions to well-located hotels, particularly in Dublin and other popular tourist destinations. That said, hotel developers and investors are competing with office developers for prime development sites in Dublin city centre, as supply levels are tight and value for money is to be found in the office market. In Dublin, construction has commenced on the extension at The Merrion Hotel, Dublin 2, of an additional five storeys. Construction is almost complete on the change of use of offices and other units to 23 additional bedrooms at The Gresham Hotel, Dublin 1, while a change of use and refurbishment of a school to 21 additional rooms as an extension to The Fleet Street Hotel is underway. Planning permission has been granted for a number of hotels in Dublin, including a new hotel development in Clonshaugh, Co. Dublin, for a ten-storey, 325-bedroom hotel with spa and leisure facilities, and for the development of eight existing buildings to a 165-bedroom hotel on Camden Street, Dublin 2. Planning has also been granted for an extension to the Russell Court Hotel, Harcourt Street, Dublin 2, an extension at Finnstown Castle 10 Irish Hotel Market Hotel in Lucan for 47 new suites, and an extension at Trinity Capital Hotel complex, Pearse Street, Dublin 2, for 23 additional bedrooms. Moreover, planning permission for the conversion of Findlater House, O’Connell Street, Dublin 1, to a seven-storey, 198-bedroom hotel was given the green light. Furthermore, following the Comer Group’s purchase of the partially built Kilternan Hotel & Country Club in 2014, approximately €20 million is the planned spend on the 128-bedroom hotel for redevelopment; planning has been granted and an additional 78-bedroom aparthotel is due to be constructed. Further hotel development is underway outside of the capital; construction has commenced for a 70-bedroom, four-storey extension to the existing hotel at the K Club, Co. Kildare, and for an extension at Ballynahinch Castle Hotel in Co. Galway, creating 10 additional bedrooms. Planning permission has been issued to construct a new 2.5-storey hotel at Manorhamilton, Co. Leitrim, and for an extension at Ashford Castle, Co. Mayo. Moreover, permission has been granted for the change of use from an office building to form an extension to the existing Park House Hotel, Forster Street, Co. Galway. Outlook 2014 was a notable year in the Irish hotel market. Following a strong opening half to the year, momentum in hotel transaction activity gathered speed in the latter half with sales for the year as a whole over double the figure recorded in 2013. Strong performance is expected to continue into 2015 with a large number of hotels sale agreed at the end of the year. Portfolio sales, in particular, which became prevalent in the market in 2014, are anticipated to be a key driver of activity for the year ahead. Furthermore, loan sales are also likely to feature more prominently during 2015. 2014 saw demand for Irish hotels strongest from international buyers, particularly the US, and it is envisaged that this will continue not least as a result of the falling value of the euro. Furthermore, access to and availability of finance are improving for both new and existing domestic and international investors. The construction of new and expanding hotels, particularly in Dublin, is welcome for the sector for 2015 as the supply of available rooms remains limited. 11 Irish Hotel Market Existing hotels are expected to continue growing in profitability, due to a lack of supply of available rooms combined with the low VAT level retained in Budget 2015. Furthermore, after two years of strong growth in the tourism sector, expectations for 2015 are very positive. The industry entered the year with a belief that the improvements witnessed in the sector will be sustained. Hoteliers are optimistic with regard to trading conditions and the generally improving economic environment. After a very busy 2014, 2015 is shaping up to be another strong and exciting year. Reflecting the strong demand in the market, a relatively recent feature of the market is that non-distressed hotel owners are now starting to consider sales of their properties, particularly in Dublin. As a direct result of increased demand, and strong hotel trading, it is likely that there will be an increase in the number of planning permission applications for new hotels in the capital in 2015. Kirsty Rothwell, Head of Hotel Solutions DTZ Sherry FitzGerald AUTHORS Marian Finnegan Chief Economist, Director Research +353 (0) 1 237 6341 [email protected] Deirdre O’Reilly Researcher +353 (0) 1 237 6365 [email protected] Kirsty Rothwell Head of Hotel Solutions, Director +353 (0) 1 639 9386 [email protected] About DTZ Sherry FitzGerald DTZ Sherry FitzGerald is the sole Irish affiliate of DTZ, a global leader in property services. With Irish offices in Dublin, Cork, Galway, Limerick and an associated office in Belfast, we are the largest commercial property advisory network in Ireland and are part of Sherry FitzGerald Group, Ireland’s largest real estate adviser. We provide occupiers and investors around the world with best-in-class, end-to-end property solutions comprised of leasing agency and brokerage, integrated property management, capital markets, investment, asset management and valuation. www.dtz.ie © 2015 This report should not be relied upon as a basis for entering transactions without seeking specific, qualified, professional advice. It is intended as a general guide only. This report has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. While reasonable care has been taken in the preparation of the report, neither Sherry FitzGerald nor any of directors, employees or affiliates guarantees the accuracy or completeness of the information contained in the report. Any opinion expressed (including estimates and forecasts) may be subject to change without notice. No warranty or representation, express or implied, is or will be provided by Sherry FitzGerald, its directors, employees or affiliates, all of whom expressly disclaim any and all liability for the contents of, or omissions from, this document, the information or opinions on which it is based. Information contained in this report should not, in whole or part, be published, reproduced or referred to without prior approval. Any such reproduction should be credited to DTZ Sherry FitzGerald.
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