ROI Hotel - Irish Hotels Federation

Irish Hotels Federation Conference
Senior Property Advisor, Patrick Ryan
Date: 10th June 2014
Overview
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NAMA
NAMA’s Hotel Strategy
Hotel Portfolio at Acquisition
Hotel Disposals to Date
Non Operational Hotels
Remaining Hotel Assets
Hotels coming to market
NAMA
• NAMA was created in response to the banking crisis. It
purchased development and associated loans from participating
institutions
• As at year end 2013 NAMA had completed €10.9billion worth of
loan and asset sales
• In March 2014, NAMA redeemed €3 billion of Senior Bonds
bringing total amount redeemed to €10.5 billion – 35% of
NAMA’s Senior Bonds in issue
• NAMA, through the deployment of working capital, is directly
supporting 15,000 jobs in Ireland in trading businesses linked to
its loans many of which are in hotels
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Strategy - Hotel Market Activities/Initiatives
Asset
Sales/Portfolio
Sale
Asset
Management
Loan Sales
Recovery in
Irish Property
Market
Capital
Expenditure
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Vendor
Finance
Hotel Strategy
Asset Sale & Portfolio Sales
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Assets are sold into the market subject to demand.
Where applicable NAMA will consider bundling hotels to
increase the marketability and range of potential
investors.
Hotel Strategy
Loan Sales
• A resourceful way of realising disposals and gaining access to
large pool of potential investors. Increasingly popular
mechanism to dispose of Assets
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Hotel Strategy
Capital Expenditure
• NAMA is committed to providing funding to
hotels for capital expenditure purposes where
such investment is economically viable and is
expected to result in a positive Return On
Investment.
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Hotel Strategy
Vendor Finance
• Assist potential investors overcome the low availability of
credit that currently acts as a barrier to market entry.
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Hotel Strategy
Asset Management
• NAMA rigorously assesses hotel performance. Where a hotel
might benefit from operator change we may recommend a reselection tender
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The Overall Hotel Portfolio at Acquisition
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208 hotels located around the world secured on NAMA Loans upon acquisition
Irish assets formed the largest portion of this portfolio (65%)
Northern
Ireland
Rest of World
Great Britain
Ireland
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6
18
48
136
The overall Irish Hotel Portfolio at
Acquisition – 136 Hotels
Concentration by Type
The hotel portfolio at
acquisition was
concentrated in 3 and 4
star hotels (72%)
2 Star
1%
Unrated
11%
Hostel
6%
5 Star
10%
4 Star
41%
11
3 Star
31%
The overall Irish Hotel Portfolio at
Acquisition – 136 Hotels
Concentration by Location
Rest of
Leinster
6%
Munster
27%
Greater
Dublin
19%
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Conn. &
Ulster
18%
Dublin
30%
The portfolio at acquisition was
concentrated in Dublin and
Greater Dublin areas (49%)
Hotels disposed of to date
Connaught & Ulster
2
8
Munster
3
13
Dublin
Rest of Leinster
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Examples of Hotels Disposed of to Date
 NAMA has sold 19
Irish hotels and
recovered net
proceeds of more
than €237m.
 14 of these assets
have been sold in the
Dublin and Greater
Dublin area.
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Hotel
County
The Dolmen Hotel
Shannon Shamrock
Jury's Hotel Cork City
Fota Island Hotel, Cobh
Trinity Capital
Morrison Hotel
Days Inn Hotel
Tramco
Clarion Hotel Dublin Airport
Hilton Hotel, Charlemont
Clarion IFSC
Barberstown Castle
Moyvalley Hotel
City North Hotel
Ocean Links Hotel
Carlow
Clare
Cork
Cork
Dublin
Dublin
Dublin
Dublin
Dublin
Dublin
Dublin
Kildare
Kildare
Meath
Sligo
Hotels disposed of to date
Loan
Redemption
5%
Sales to date have been
dominated by asset
sales as opposed to
alternative transaction
types including Loan
Sales.
Loan Sale
17%
Asset Sale
78%
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Loan sales are an
increasingly popular.
22% of transaction in
2014 were loans sales
Non Operational Hotels
• The remaining hotel portfolio secured to
NAMA’s loans consists of 117 properties.
• Alternative uses have been found for some
assets including student accommodation and
educational facilities
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Non Operational Hotels
• 16 of these assets are not trading as hotels
NAMA does not support unviable
assets and 10 of the premises
(8.5% of the remaining portfolio)
have been closed under NAMA’s
remit
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6 of these assets are either
incomplete or NAMA has
partial exposure
Operating Hotels
102 of the remaining hotels
are operational. This
represents just (12%) of Irish
hotels
The value of the remaining
hotel portfolio as at the date
of acquisition is approximately
€786m
The composition of the
portfolio is largely unchanged
with 3 and 4 star Hotels
dominating (76%)
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Unrated
7%
Hostel
7%
5 Star
9%
4 Star
42%
2 Star
1%
3 Star
34%
Geographical Spread of operating hotels
The composition of the portfolio is
largely unchanged with asset
predominately located in Dublin
and Greater Dublin (49%)
Connaught & Ulster
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Munster
31
19
Dublin
26
Rest of Leinster
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Assets on the Market or coming to Market
• Investor demand for hotel assets remains strong and cash offers
continue to dominate.
• NAMA is continuing to provide suitable properties to meet this
interest
• In addition to the 19 hotel assets disposed of to date a further 8
properties are currently being marketed or scheduled for market in
the coming months.
• These hotels are located in or near key urban centres.
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NAMA is Open and Transparent - All hotel assets are fully and
comprehensively marketed in public by third party agencies
Hotels currently on the market
The Malton Killarney, Co. Kerry
Kilkenny Ormonde Hotel, Kilkenny
Gresham Metropole, Co. Cork
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Hotels currently on the market
Portmarknock Hotel, Co. Dublin
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The Westin, Dublin City
Hotels Coming to the Market
Premier Inn Swords, Co. Dublin
Maldron Hotel, City West, Co. Dublin
Waterford Castle, Co. Waterford
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Remaining Hotel Portfolio
• There are 153 hotels remaining around the world, securing NAMA’s loans
• Irish hotels are an increasingly dominant portion of this portfolio (76%)
Northern
Ireland
6
Rest of World
5
Great Britain
Ireland
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117
Thank You