CBRE Markets Slieve Russell Hotel As Dalata Reports Dublin Slowdown
A busy week for Ireland’s hospitality sector saw the country’s biggest hotel group confirm that several factors had slowed performance across its Dublin portfolio, while one of Ireland’s best-known hotels was put up for sale.
Ireland’s hotel market has started the year softer than 2023 because of new supply in Dublin, the impact of the increased value-added tax rate from September 2023 and a less favourable run of city events, according to Dalata Chair John Hennessy.
“As reported during our full-year results in February, there has been lower levels of trade in Ireland. While the Dublin market continues to digest the impact of new supply, trade improved during March compared to January and February,” Hennessy said Thursday at the company’s annual general meeting.
Dalata projects revenue per available room in the city to be down 4% year-over-year for the period from January to April.
Dalata has 53 hotels across Ireland, the UK and Europe, delivering over €600M in revenue in 2023. It recorded year-end total assets of €1.7B. It added one hotel in Amsterdam and two in London and is gearing up a conversion in Edinburgh.
“Last year marked another record performance in terms of revenue and free cash flow generation together with strong execution of our growth strategy,” Hennessy said at the AGM.
He said the year has started with good performance in Dalata’s UK portfolio, which is expected to achieve modest year-over-year RevPAR growth, with healthy levels of corporate demand across all regions.
“We remain optimistic in our outlook for the remainder of the year where trade typically is driven by stronger seasonal factors, supported by a strong events calendar, flight schedules and forward bookings for May and June,” Hennessy said. “We also look forward to the greater contribution from the 10 hotels added to the portfolio since 2022.”
Dalata is also set to open four new Maldron hotels in 2024 in Liverpool, Brighton, Manchester and London.
Separately, CBRE this week put the Slieve Russell Hotel Golf & Country Club up for sale. The landmark 224-bedroom resort hotel includes banquet and leisure facilities, plus a PGA championship golf course. It is expected to achieve a price in the region of €35M.
Equidistant from Dublin and Belfast, the resort on approximately 300 acres opened in 1990 and is one of Ireland's premier upscale hotels. Following several extensions, the buildings total 296K SF. Around €7.5M has been invested since 2019.
“The unique opportunity to acquire one of Ireland's best-known and highly profitable resort hotels rarely presents itself,” said Paul Collins, CBRE head of hotels, Ireland. “The scale of ongoing investment in the hotel’s facilities and growing business will appeal to the national and international investment market.”
