Deka Immobilien Buys Ruby Molly, But IHF Warns Hotel Bookings €100M Down
Deka Immobilien has acquired the Ruby Molly Hotel development in Dublin’s city centre from ESR Europe for approximately €86M for its open-ended real estate fund Deka-ImmobilienEuropa.
The property was owned through ESR Europe Active Real Estate Fund IV, a discretionary value-add fund series targeting Western Europe. The sale follows ESR Europe’s January disposal of an Irish residential development that was also owned under the same fund for €160M, bringing the total combined realisation in Dublin to circa €246M in 2025.
Developed by the seller Creekvale, a company owned by ESR Europe, and completed in April 2024, the 272-key prelet hotel development is on Arran Street East and was initiated in the third quarter of 2021 following the exercise of an option to acquire the land. The property consists of a hotel, restaurant and separate ground-floor retail unit.
Officially opened in May 2024, the asset was fully prelet to Munich-based hotel operator Ruby Hotels on a 25-year term.
“This acquisition aligns perfectly with Deka-ImmobilienEuropa’s strategy to enhance geographical diversification and strengthen our focus on the hotel sector,” Deka Immobilien Head of Hotel Acquisition and Sales Frank Hildwein said in a statement.
ESR Europe was advised by JLL, acting as the letting and selling agent, and Arthur Cox provided legal counsel.
The deal came as the Irish Hoteliers Federation warned that global and national economic headwinds remained a concern for members, with its latest survey finding that as much as 94% of hoteliers are concerned about the outlook for the global economy. Forward bookings for hotels are down €100M for 2025 compared with this time last year.
Overall occupancy in hotels was down 2% last year on the previous 12 months, a trend that is set to continue in 2025, the IHF said, especially outside Dublin.
However, Ireland’s largest hotel group, Dalata, was more bullish late last year when it gave a trading update. It acquired the Radisson Blu Hotel Dublin Airport and exchanged an agreement for lease for a Clayton hotel to be developed in London. It also completed the refinancing of its debt facilities, securing a €600M debt package, including its inaugural private placement.
“The ability of Dublin Airport to continue to increase passenger numbers is crucial to support further growth across the Irish economy. Looking forward, I am pleased that the cap will not apply in the summer of 2025, and we are hopeful that it will be removed fully in time,” Dalata CEO Dermot Crowley said in a statement.
“It is expected that passenger numbers at Dublin Airport will grow by 4% in 2025, with increased access from North America, which will be very positive for hotels across the whole of Ireland.”
Bisnow’s Ireland Hotel Outlook event takes place in Dublin on 15 May.
