According to property expert Savills Ireland, there is a “optimistic outlook” for the hotel industry through 2024, with forward bookings indicating solid months ahead and numerous highly anticipated events to come throughout the year.
The industry recovered this year, the business claims, even with persistent issues including the pandemic’s aftermath, the consequences of the conflict in Ukraine, and inflationary pressures. This was after years of turmoil during which the industry demonstrated resilience.
According to Savills Ireland’s head of hotels and leisure, Tom Barrett, hotel occupancy rates have “returned to their 2019 levels with even stronger pricing.”
This shows the “industry’s adaptability and resilience,” he claimed.
“2023 has been a positively memorable year for many hotel operators, despite cost pressures across various sectors, including payroll and energy,” Mr. Barrett stated. “These challenges have been largely offset by the growth in top-line revenue.”
Dublin’s request
The hotel sector has already experienced tremendous demand heading into 2024, mostly due to several events that are happening in Dublin.
Hotel reservations were boosted by the rush to secure tickets for Taylor Swift’s June performances at Aviva Stadium and by Coldplay’s August shows at Croke Park.
Furthermore, in May, Aviva Stadium will host the UEFA Europa Cup Final.
Savills Ireland believes it will be difficult for hotels to top the record average room cost of €326 set in August of this year during an American football game between Notre Dame and the US Navy.
The hotel investment market has witnessed significant changes, even as the industry—especially in Dublin—gets ready for what might be a busy summer.
Investment deals in the Dublin hotel industry have slowed down, according to Mr. Barrett, who also noted that the “gap between buyer and vendor expectations has widened.”
He claimed that regular interest rate increases that drive up the cost of borrowing have an impact on this.
According to Savills, there has been “significant activity” in regional Ireland despite decreased transaction levels.
The company reported that there had been a number of significant deals in the €10 million to €30 million price bracket, such as the sale of the Imperial Hotel Cork to seasoned Dublin hotel and bar operator Louis Fitzgerald.
Savills expects the hotel market to see a number of noteworthy transactions in the upcoming year.
It is anticipated that UK company LHC will acquire the majority of Press Up Hotels, which includes the Devlin, Clarence, and Dean Hotels, before the end of the next year. Furthermore, Tifco may decide to sell its portfolio of 24 hotels across the nation.
These developments, in addition to the continued interest in turning office buildings into hotels, according to Savills, “underline the sector’s attractiveness as a high-potential investment avenue.”