Irish hotel investment market: H1 2026 transaction summary
Seven hotel transactions worth €82.75 million were reportedly completed in H1 2026, with all activity occurring outside Dublin.
Overview
Covering H1 2026 hotel transaction activity, this article summarises Ireland's hotel investment market.
It includes pipeline data to Q1 2026 and H2 2026 outlook indicators. It reviews investment activity alongside supply, costs, and market sentiment.
At the close of Q1 2026, 13,870 tourist accommodation bed places were under construction.
This report provides an overview of hotel investment activity, accommodation development, market conditions and investor sentiment across Ireland in H1 2026.
Key takeaways
Trends
Transaction volumes decline sharply
Hotel investment activity slowed significantly in H1 2026. Seven transactions worth €82.75 million completed, compared to approximately €340 million in H1 2025. In the same period last year, five transactions above €20 million completed, with three above €50 million.
The decline stems from an absence of large-scale sales, particularly in Dublin. In 2025, €1.6 billion traded hands, driven by the sale of the Dalata Hotel Group. Excluding that transaction, 2025 volumes reached €457 million.
Regional destinations attract investors
All H1 2026 transaction activity took place outside Dublin. Hotels in Kerry, Meath,Donegal, Sligo, Cork, and Clare all changed hands.
The International Hotel in Killarney, Co. Kerry, sold for €22 million. Its sale price per bedroom key reached €224,490, the highest in H1 2026. Price per key compares the sale price of a hotel to the number of bedrooms it contains.The Radisson Blu Hotel in Donegal sold for €16 million. The Yeats Country Hotel in Sligo and the Hydro Hotel in Clare were both purchased by local buyers. These sales followed the end of government contracts at both properties. Fáilte Ireland Internal Content Four hotels have also recently launched to market. These include the Dublin One Hotel at €46 million and the Mount Falcon Hotel in Mayo at €10 million. The Leeson Inn in Dublin is listed at €8.5 million. The Seven Oaks Hotel in Carlow is listed at €7.5 million.
These deals show investor appetite for established provincial destinations across Ireland.
Development pipeline continues to grow
The pipeline of new tourist accommodation expanded in early 2026. A total of 13,870 bed places were under construction as of Q1 2026.
This marks a rise of 9% from 12,740 bed places in Q3 2025. Dublin accounts for 65% of all bed places under construction.
Some 10,960 bed places are expected to complete in 2026, with 2,910 more in 2027. These figures are expected timelines rather than confirmed deliveries.
Hospitality insolvencies show improvement
The hospitality sector showed signs of stabilisation in H1 2026. A total of 57 hospitality insolvencies were recorded, down 14% year on year.
The majority were bars and restaurants. The average company age was around 10.5 years.
Cost pressures remain, but the trend points to improvement.
Visitor demand remains strong
Overseas and domestic visitor numbers continued to grow. Trips by overseas visitors to Ireland reached 3.2 million in H1 2026, up 15% year on year.
Domestic trips by Irish residents reached 2.96 million in Q1 2026, up 6% year on year.
This strong demand supports the cautiously positive outlook for hotel investment.
Dublin slips in European rankings
Dublin fell to 15th place in the top European cities for hotel investment in 2026. This represents a decline of four places year on year.
Hotels also fell globally as an asset class, ranking eighth for investor opportunity in 2026, down three places from 2025.
In Europe, hotels ranked seventh, down four places from the 2025 survey. However, 84% of survey respondents remain optimistic about the long-term future of the hotel market.
Cautiously positive outlook for H2 2026
Transaction volumes are expected to continue at a steady pace in H2 2026. Investor sentiment remains positive but more selective.
The MHL Group has reportedly agreed to buy two Dublin hotels from Tifco Hotel Group. The deal includes the Crown Plaza Hotel Dublin and the Holiday Inn Express Dublin Airport.
The reported sale price is €95 million. This transaction awaits approval from the Competition and Consumer Protection Commission (CCPC).
Macroeconomic forecasts support the positive outlook. Modified Domestic Demand is forecast to grow 3.3% in 2026 and 2.8% in 2027.
Consumer spending is forecast to grow 1.8% in 2026 and 1.9% in 2027. Inflation is forecast at 3.5% in 2026, easing to 2.9% in 2027.
These forecasts are from the Central Bank of Ireland, June 2026, and are not confirmed outcomes.
Understanding the findings
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.
Total hotel transaction value reached €82.75 million across seven deals in H1 2026. This compares to approximately €340 million in H1 2025.
The decline reflects a lack of large-scale sales, particularly in Dublin. All transactions took place outside the capital, signalling strong appetite for regional assets.
All H1 2026 transaction activity occurred outside Dublin. Hotels in Kerry, Meath, Donegal, Sligo, Cork, and Clare all changed hands.
The International Hotel in Killarney achieved the highest price per key at €224,490.
Dublin fell to 15th place in the European hotel investment city ranking, down four places year on year.
The development pipeline grew to 13,870 bed places under construction as of Q1 2026. This is up 9% from 12,740 in Q3 2025.
Dublin accounts for 65% of all bed places under construction. Some 10,960 bed places are expected to complete in 2026, with 2,910 more in 2027.
These figures are expected timelines rather than confirmed deliveries.
Cost pressures from staffing, energy, and inflation remain. The reduced VAT rate of 9% came into effect in July, which may help ease some pressure.
Hospitality insolvencies fell to 57 in H1 2026, down 14% year on year, pointing to a stabilising sector.
Businesses should consider how new supply in their area may affect competition.
Download the full Hotel Transaction Summary (August 2026)
Read the full Hotel Transaction Summary for transaction detail, pipeline data, and investor outlook.