IRISH HOTEL MARKET - Think Business...Source: CBRE Hotels Research +373 +2,122 +5,379 +7,322 +7,614 6,922 7,614 CBRE 7 BOI | IRISH HOTEL MARKET DUBLIN NEW SUPPLY –BY LOCATION 992

I R I S H H O T E L M A R K E T29 NOVEMBER 2018

2 BOI | IRISH HOTEL MARKETCBRE

Up to €500m of Hotels could trade in Ireland in 2018.– CBRE Market Outlook, 2018


Regional Pipeline

Transaction Landscape

Market PlayersBrands and Buyers

Emerging Deal Structures

Supply ChangesDublin

New Openings Dublin – 2018 & Beyond

AGENDA


SUPPLYCHANGES

N o . 1

D U B L I N


DUBLIN HOTEL SUPPLY EVOLUTION

The Gibson The Dean Holiday Inn ExpressThe Marker The Address

1.3%

1.0% 0.3%

1.2%

0.9%

5.5%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

17,500

18,000

18,500

19,000

19,500

20,000

20,500

21,000

21,500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018November

Existing Closed Opened Growth %


0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Bedrooms opening by Quarter

Bedrooms On Site Bedrooms Opening

422 rooms opened in 2016

182 rooms opened in 2017

1,091 rooms opened in 2018 YTD

373 more rooms to open in 2018

3,500 rooms currently on site

7,614 rooms to open by 2022

37% increase in current supply

DUBLIN DEVELOPMENT PIPELINE

3,829

Source: CBRE Hotels Research

+373

+2,122

+5,379

+7,322

+7,614

6,922

7,614


DUBLIN NEW SUPPLY – BY LOCATION

992 Total New Bedrooms6 Schemes

4,884 Total New Bedrooms47 Schemes

1,738 Total New Bedrooms13 Schemes

AIRPORT

CITY

CENTRE

DUBLIN SECONDARY

267 Extensions725 New Builds

899 Extensions3,985 New Builds

84 Extensions1,654 New Builds

Airport Total

Dublin City Centre Total

Dublin Secondary


NEW OPENINGS

2 0 1 8 A N D B E YO N D

N o . 2


2018 OPENINGS

• 145 Bedrooms

• Office Conversion

• 17 Month Build

• Opened February 2018

IVEAGH GARDEN HOTEL

• 137 Bedrooms

• Brownfield Site

• 22 Month Build

• Opened in July 2018

MALDRON KEVIN STREET THE DEVLIN

• 41 Bedrooms

• New Build

• 15 Month Build

• Opened in November 2018


TO OPEN BY YEAR END 2018

CLAYTON HOTEL CHARLEMONT

Rooms: 187 Opened: November 2018

Rooms: 202 Opening: December 2018

ALOFT BLACKPITTS


DUBLIN PIPELINE – NEW ON SITE THIS YEAR

THE HENDRICK SACKVILLE HOUSE MOXY HAMPTON BY HILTON - RIVER HOUSE

KEAVAN’S PORT HOTEL - WETHERSPOONS ORMOND LOCKE BY SACO - ZANZIBAR BECKETT LOCKE BY SACO

Rooms: 147 Estimated completion Date: Q3 2019

Rooms: 158

Estimated completion Date: Q4 2019Rooms: 249 Estimated completion Date: Q1 2020


Units: 160 Estimated completion Date: Q3 2020

Units: 214Estimated completion Date: Q4 2020


DUBLIN PIPELINE – NEW ON SITE THIS YEAR

ORMOND HOTEL



ANDREWS LANE THEATRE


SUPPLY CHANGES

N o . 3

R E G I O N A L


GALWAY - NUMBERS AND PROJECTS

IN PLANNING SYSTEM:

647

GRANTED:

429

ON SITE:

35

Park House Hotel – 20 bedrooms – On SiteTravelodge Galway – 17 bedrooms – Completed Prospect Hill – 134 bedrooms – Acquired by Paddy McKillen

GRANTED EXTENSIONS:

6 Projects

75 Bedrooms

GRANTED NEW DEVELOPMENTS:

5 Projects

354 Bedrooms

PRE-PLANNING:

2 Projects

350 Bedrooms


CORK – NUMBERS AND PROJECTS

IN PLANNING SYSTEM:

1,804

GRANTED:

1,414

Sullivan’s Quay – 220 bedrooms – GrantedMaldron Beasley Street – 230 bedrooms (+165) – On Site

GRANTED EXTENSIONS:

5 Projects

253 Bedrooms

GRANTED NEW DEVELOPMENTS:

8 Projects

1,161 Bedrooms

ON SITE:

171

Metropole & The M – 75 & 228 bedrooms – To go on site 2019

PRE-PLANNING:

2 Projects

285 Bedrooms


TRANSACTION LANDSCAPE

N o . 4


IRELAND – TRANSACTION VOLUMES

32

26

10

2 3

8

24

33

65 63

66

36

12

0

10

20

30

40

50

60

70

0

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3

Num

ber

of H

ote

ls T

raded

Tra

nsa

ctio

n v

olu

me in €

Volume No. of Transactions



2018 TRANSACTIONS - DUBLIN

IBIS HOTEL DUBLIN HILTON DUBLIN AIRPORT HILTON GARDEN INN DUBLIN CUSTOM HOUSE

PROJECT TRIDENT PREMIER SUITES BALLSBRIDGE CITYWEST HOTEL - INTERNAL SALE

Portfolio of 19 Hotels and Developments SOLD

Investment Sale of 49 unitsSOLD

764 Bedrooms SOLD

150 Bedrooms SOLD

166 BedroomsSOLD

323 BedroomsSOLD


2018 TRANSACTIONS - REGIONAL

MCWILLIAM PARK HOTEL HERITAGE HOTEL KILLENARD CASTLE OAKS HOUSE HOTEL

ATHLONE SPRINGS HOTEL CONNEMARA COAST HOTEL RADISSON BLU SLIGO

68 Bedrooms SOLD

141 BedroomsSOLD

132 BedroomsSOLD

103 Bedrooms SOLD

98 BedroomsSALE AGREED

64 BedroomsSALE AGREED


CASE STUDY – PROJECT TRIDENT

Platform Sale of the Tifco Hotel Group, including 19 assets. Largest ever hotel transaction in Ireland.“ ”Full Service Portfolio

Developments

Travelodge Portfolio

• Crowne Plaza Blanchardstown • Crowne Plaza Dundalk• Crowne Plaza Dublin Airport• Holiday Inn Express Dublin Airport• Hilton Kilmainham

• Hard Rock Dublin (Parliament Hotel• Travelodge Townsend Street

• Travelodge Swords• Travelodge Ballymun• Travelodge Phoenix Park• Travelodge St Stephen’s Green• Travelodge Rathmines• Travelodge Waterford

• Travelodge Galway• Travelodge Limerick Coonagh• Travelodge Limerick Castletroy• Travelodge Belfast• Travelodge Derry


DUBLIN YIELDS & PRICE PER KEY EVOLUTION


5.00%

5.50%

6.00%

6.50%

7.00%

7.50%

8.00%

125

175

225

275

325

375

425

2012 2013 2014 2015 2016 2016 2016 2017 2018

Dublin

City

Yie

ld

Price

per

Key

(€0

00

’s)

Price per Key (EUR '000s) Dublin City Yields

The MorrisonBurlington Hotel Trinity Capital The Spencer Temple Bar Hotel The Gresham

Burlington HotelDublin Lifestyle

Collection Temple Bar Hotel


SITE SALES – THE VALUE OF PLANNING PERMISSIONS

ZANZIBAR (2016)

FPP For: 89 Bedrooms

Re-applied For: 165 Bedrooms

Price per key: €115k

Revised price per key: €62k

BENBURB STREET (2018)

FPP For: 96 bedrooms

Re-applied For: 130 bedrooms


Revised price per key: €69k

ANDREWS LANE THEATRE (2016)

Lapsed planning

Price per Key: €28k

ABBEY STREET UPPER (2017)

Lapsed planning


Sites sold with Hotel planning permission

Sites sold without Hotel planning permission


MARKETPLAYERS

N o . 5

B R A N D A N D B U Y E R S


TWO YEARS AGO – BRANDS CONSIDERING DUBLIN

CONFIRMEDNEW STILL LOOKING

NOW


BUYER LANDSCAPE

International

International

International National

National

National

International

International

International


EMERGING DEAL STRUCTURES

N o . 6


1 2 3

GROUND LEASES

EMERGING DEAL STRUCTURES

• Term: 100 years +

• Rents: 10% - 20% of EBITDAR

• Reviews: RPI or CPI with cap and collar

• Buyback: Possible provision for lessee to buyback

freehold interest

• London yields: +/- 2%

INCOME LEASESSALE AND LEASEBACK


• Rents: 10% - 20% of EBITDAR


• Buyback: Buyback freehold at expiry for €1

• London yields: +/- 3%


• Rents: 55% - 65% of NOI

• Rent Cover: 1.5 to 1.8 times


• Covenant Strength: Parent guarantee/ rent

deposit/ bank guarantee/ insurance bond

• Other conditions: Provision of financial

information/ obligation to put FF&E fund in place

• London yields: 4% +


Hotel activity in Ireland to exceed 2018 levels in the coming year.– CBRE Market Outlook, 2019

CONTACT US

JOHN HUGHESDirector+353 1 618 [email protected]

DEBBIE HUGGERAnalyst+353 1 618 [email protected]

Thank You.

mailto:[email protected]

mailto:[email protected]

Documents

IRISH HOTEL MARKET - Think Business...Source: CBRE Hotels Research +373 +2,122 +5,379 +7,322 +7,614 6,922 7,614 CBRE 7 BOI | IRISH HOTEL MARKET DUBLIN NEW SUPPLY –BY LOCATION 992