Irish hotel investment reaches historic high

In 2025, the Irish hotel market experienced an unprecedented year, with investments surpassing €1.7 bn, according to Savills Ireland. 

Citizen M - Savills

This record was largely due to the €1.4 bn acquisition of Dalata Hotel Group, with roughly €1.0 bn of that attributed to Irish properties—the largest hotel deal in Irish history. This dramatically exceeded initial forecasts of €500-€600 mln for the year.
A total of 66 hotels were sold in 2025, more than double the 2019 figures, as investor confidence grew with easing interest rates. A notable transaction was the €86.5 mln sale of the Ruby Molly Hotel in Dublin, marking the first such investment in the city since 2022.
Hotel performance remained consistent, with Dublin hotels seeing an average occupancy of 83% and daily rates of €175, a 23% increase from pre-pandemic levels. While early 2025 saw slower inbound tourism, visitor numbers recovered from April, boosting performance for the rest of the year.
Regional Irish hotels also saw strong growth, with limited new supply and robust domestic demand driving significant rate increases: Limerick (60%), Galway (51%), and Cork (38%) all saw substantial rises in average daily rates between 2019 and 2025.
Dublin remains the focus of development, with nearly 1,000 new hotel rooms added in 2025 and another 1,000 expected in 2026, with more planned for 2027. Despite this expansion, occupancy is projected to remain strong at around 82%, supported by steady tourism and major events.
Conor Clare of Savills Hotels and Leisure said: “2025 marked a defining year for the Irish hotel investment market. The scale of the Dalata transaction, combined with a return of institutional capital and consistently strong operating performance, has fundamentally reinforced investor confidence in the sector. While development costs and operational pressures remain, the outlook for both Dublin and regional markets is positive, underpinned by demand, limited supply in key locations and Ireland’s continued appeal as a tourism destination.”
 Savills forecasts that 2026 will see a return to more typical transaction volumes, driven by stable economic conditions, reduced cost inflation, and the continued expansion of hotel brands in major Irish cities. Additionally, a planned reduction in the VAT rate for food-led hospitality starting in July 2026 is expected to modestly improve profit margins for operators.