The Irish hotel market is on course for an unprecedented year, with transaction volumes expected to reach €1.7 billion in 2025, surpassing the previous record of €1.1 billion set in 2006. It marks a significant acceleration from the €836 million recorded in 2024, which itself was well above the long-term average. This extraordinary performance underscores the sector’s resilience and attractiveness to both domestic and international capital.
Trading performance in Dublin has remained resilient throughout 2025, supported by strong demand fundamentals. Year-to-date occupancy stands at 85 per cent, up over one percentage point on the same period last year. Average Daily Rate (ADR) has held firm at €175, despite competitive pressure from an increase of budget-oriented offerings, which has slightly altered market composition. These metrics highlight the sector’s ability to absorb new supply without significant erosion of performance, affirming Dublin’s sustained position as a high-demand hospitality hub.
The sale of Dalata’s Irish hotel portfolio accounts for the majority of the volume and will rank as the largest transaction ever recorded in the sector. This deal reflects the depth of capital targeting Irish hospitality assets and the confidence investors have in the long-term fundamentals of the sector.
[ Dalata racks up €6.2m of strategic review and sale costsOpens in new window ]
Beyond Dalata, several notable deals have shaped the year, including the Government’s acquisition of Citywest Hotel for €148.2 million, German investor Deka’s €86 million acquisition of Ruby Molly, Dalata’s €83 million purchase of the Radisson Dublin Airport and FBD Hotels’ purchase of The Grand Hotel Malahide for €55 million. The strength of appetite for regional assets continued, with transactions including Hotel Kilmore in Cavan, Kilkenny Ormonde Hotel, the Absolute Hotel in Limerick, the Nuremore Hotel in Monaghan and the Armagh City Hotel in Northern Ireland.
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Buyer activity in 2025 highlights a clear trend; Irish capital remains dominant, with groups such as FBD, Talbot Collection, TMR Collection, and McGettigans actively expanding their portfolios. Foreign investors have been highly selective but continue to target prime Dublin assets, as evidenced by Deka and Tristan Capital’s involvement, the latter having acquired the Easy Hotel platform, which included a Dublin hotel.
Development activity in Dublin remains steady, with just over 3,000 hotel bedrooms currently on site. Market composition reflects a clear tilt toward affordability, with 36 per cent of this pipeline concentrated in the budget and mid-scale category, catering to cost-conscious travellers and group demand. Meanwhile, 25 per cent of rooms fall within the upscale and upper-upscale segment, reinforcing Dublin’s positioning as a destination for both leisure and corporate guests seeking higher-end experiences.
The outlook for 2026 is promising, with combined guide prices of hotels for sale exceeding €500 million. Several high-profile assets are currently being marketed and are expected to attract interest from both domestic and international buyers.
[ Landmark Killarney hotel hits the market with €20m price tagOpens in new window ]
Notable hotels on the market include The Hoxton, guiding €100 million, and two investment opportunities – the Premier Inn Dublin City Centre Clerys and Premier Inn Dublin Airport. Pricing for prime Dublin hotels is expected to hold firm, while regional opportunities will continue to attract Irish buyers seeking strategic expansion. We also expect a number of exciting development projects in Dublin city centre for tenants, developers and owner-occupiers.
John Hughes is a director within CBRE Ireland’s hotel division
