Irish hotel investment in 2025: what the data shows
Hotel investment activity reached just over €1.6 billion in 2025, mainly driven by the Dalata Hotel Group sale.
Overview
Covering full-year 2025 hotel transaction activity, with accommodation pipeline data to Q3 2025 and 2026 market outlook indicators, this article summarises what changed in Ireland’s hotel investment market. Transaction values were shaped by one large sale, while construction data shows where new bedplaces were concentrated. The findings help businesses read investment activity alongside supply, costs, and market sentiment.
At the close of Q3 2025, 12,750 tourist accommodation bed places were under construction. For tourism businesses, the report gives a market view to compare local supply, costs, and 2026 planning assumptions.
Key takeaways
One deal shaped the 2025 transaction total
Hotel investment activity measured just over €1.6bn in 2025. The €1.17bn Dalata sale accounted for most of this. Excluding that sale, transaction volume was €457m, closer to 2021 and 2022 levels.
Dublin assets achieved higher prices per key
Dublin assets continued to achieve higher prices per key than regional assets. For example, the Fleet Hotel reached approximately €385,000 per key, while the Kilkenny Ormonde Hotel reached €271,000 per key at the regional level.
Construction activity increased and remained concentrated in Dublin
There were approximately 12,750 tourist accommodation bed places under construction at the close of Q3 2025, up from around 11,550 in Q1 2025. Around 71% of this activity was located in Dublin.
Hospitality costs remained part of the trading context
Cost pressures continue to form part of the operating environment. There were 129 hospitality insolvencies in 2025, a 12% decrease year-on-year, with restaurants and cafés accounting for the majority.
Hotel investor rankings shifted in 2026
Hotels moved from 5th to 8th place in global investor rankings, while Dublin fell to 15th among European cities. This reflects a relative shift in investor preference across asset classes rather than a solely negative view of the sector.
What this means for tourism businesses
This report reviews hotel investment activity, development pipelines, operating conditions, and investor sentiment in Ireland. Use it to compare market activity across Dublin and regional locations, understand where new accommodation capacity is being developed, and identify the commercial pressures likely to shape the sector in 2026.
Irish hotel transactions reached just over €1.6 billion in 2025, but most of this value came from the €1.17 billion sale of Dalata Hotel Group. Excluding that transaction, activity totalled €457 million, with approximately €312 million in Dublin and €145 million outside the capital. This indicates continued investor activity, while also showing how one exceptional sale shaped the overall figure.
Dublin hotels generally achieved higher prices per bedroom than regional properties. The Fleet Hotel recorded the highest price per key at €385,000, compared with a regional high of €271,000 for the Kilkenny Ormonde Hotel and adjoining car park. Individual property characteristics, performance, location, and transaction structure will still affect any comparison.
There were 12,750 tourist accommodation bedplaces under construction at the end of Q3 2025, up from 11,550 in Q1. Dublin accounted for 71% of the national pipeline, while a significant share of regional development related to the expansion of Center Parcs Longford Forest. The effect on an individual business will depend on the timing, type, and location of new supply in its market.
The report identifies rising operating costs, labour and workforce challenges, weaker consumer sentiment, currency movements, and geopolitical uncertainty as ongoing risks. It also highlights potential opportunities from lower interest rates, artificial intelligence, demand for distinctive experiences, and environmental, social, and governance strategies. These factors should be considered alongside the performance and circumstances of each business.
Practical actions you can take
Review costs and commercial performance
- Compare current costs, margins, cash flow, and financial forecasts with recent performance.
- Test how changes in payroll, pensions, energy, food, and other operating costs could affect profitability.
- Review whether pricing and revenue decisions reflect demand, costs, and the competitive position of your property.
Improve operational efficiency
- Review how labour, purchasing, energy, maintenance, and service delivery affect your cost base.
- Identify recurring operational issues that could be simplified or standardised.
- Use reliable business data to prioritise changes with a measurable financial or service benefit.
- Use Clinics in Cost Management for practical tools and expert guidance, subject to current availability.
Download the full Hotel Transaction Summary (February 2026)
Read the full Hotel Transaction Summary (February 2026) for transaction detail, pipeline data, and investor outlook.
How we uncover these insights
Compiled from market transaction sources, public data and research sources cited in the report, including CBRE, JLL, Savills, RCA, CSO, Central Bank of Ireland, ECB, Deloitte and CIS.