The value of Irish hotel deals could reach €1 bn in 2014, according to hotel group Dalata which has announced plans to spend €500 mln on acquisitions over the next three years.

The value of Irish hotel deals could reach €1 bn in 2014, according to hotel group Dalata which has announced plans to spend €500 mln on acquisitions over the next three years.

In its H1 results, the Irish company predicts that domestic hotel deals and loan sales combined could hit €1 bn for the year, a total not seen since 2006.

Recent activity includes purchases by Kennedy Wilson (€140 mln in total on Dublin’s Shelbourne and Portmarnock hotels) and John Malone (€96 mln in total on Hilton and Westin hotels in the capital).

A number of ‘bad bank’ hotel assets are expected to come to market soon, including the Project Venue portfolio from the National Asset Management Agency (NAMA), and Project Stone hotels from IBRC (Irish Bank Resolution Corporation). Ulster Bank is currently offering eight hotels as part of Project Nadal.

Dalata itself expects to have around €500 mln to spend after its flotation in March raised €256 mln, topped up with leverage.

'There is continued strong growth in Dublin and encouraging signs of recovery in regional Ireland,' according to CEO Pat McCann. 'The sustained commitment of government to the development and support of the tourist industry through a combination of investment, promotional and fiscal measures has revived confidence in the hotel sector.'

The firm reported a 31% rise in H1 revenues compared to the year-earlier period, with profits up from €900,000 to €2.4 mln.