Robust Irish Hotel Market Attracts International Investment

Monday, January 15, 2024

The Irish hotel market is expected to remain robust in 2024, attracting significant interest from international investors

"We can also learn where we expect this investment to come from, with more than half of respondents (56%) expecting hotel investment to be sourced from Europe." - Rebecca Robinson

Deloitte identified Dublin as the eighth most enticing European city for hotel investment in their 2023 report.

London holds the top spot, followed closely by Lisbon and Amsterdam.

Insights were gleaned from leading voices in the hospitality sector, comprising proprietors, managers, financiers, builders, and stakeholders.

Private equity remains the primary source of equity capital for European hotel acquisitions, accounting for 31% of investments in 2024.

"increasingly becoming important sources of investment."- Rebecca Robinson

Sovereign wealth funds have seen their impact expand by 10%, placing them among the top three investment sources.

As many as 66,200 accommodations were offered in the Republic of Ireland towards the year-end of 2023; this figure represented an increase of over 1,800 rooms due to completions.

Fáilte Ireland research indicates that 12% of all registered tourism bed stock is under contract to the state, limiting availability for tourism, corporate, and leisure purposes.

The hospitality sector faces several challenges in 2024, with rising costs, higher interest rates, a shortage of skilled labor, and increased staff costs cited as top risks by executives.

"as climate change and extreme heat elsewhere in Europe contributes to a rise in Ireland's popularity as a holiday destination." - Breda McEnaney

Despite these challenges, the Irish hotel market continues to attract investors due to its robust performance and growing popularity as a holiday destination.