It’s been quiet, oh, so quiet, out there in the world of Dublin hotels.
Moribund investment activity in 2026 has followed a record 2025, when transactions exceeded €1.6B, albeit largely driven by the €1.4B acquisition of Dalata Hotel Group by Sweden's Pandox and Norway's Eiendomsspar.
And there have been some unusually downbeat comments from Ireland's tourism industry, warning that falling North American visitor numbers, rising costs and a shortage of accommodation outside the capital could threaten future market growth.
But some big deals are in the air. International investors continue to circle a mix of available assets, from landmark to budget, which, along with a healthier development pipeline, could make 2027 a standout year.
)
“Dublin represents a dynamic market for hospitality investment,” Ronan Group Director James Ronan told Bisnow.
“Demand from both business and leisure travellers is strong, and the city’s newer neighbourhoods are establishing themselves as leading commercial and lifestyle destinations.”
The latest developments include the recent opening of lifestyle brand citizenM's first Irish hotel, a 245-room building in Dublin's Liberties neighbourhood; plans for two hotels as part of Ronan Group's proposed redevelopment of the former Citigroup headquarters; Aviva's search for an operator for a new luxury property near Grafton Street; and Finland’s Bob W signing for a second Dublin location.
Meanwhile, on the investment side, a new Premier Inn at Clerys Quarter is being offered for sale for €66.6M ahead of its planned opening next year, and the sale of the five-star Conrad and Morrison hotels will likely fetch more than €200M.
So far this year, tourism body Fáilte Ireland recorded just seven hotel transactions worth €83M, compared with approximately €340M during the same period in 2025, and all the deals were outside Dublin.
But several projects are injecting momentum into the market. Ronan Group has submitted revised plans for the former Citigroup headquarters at 1 North Wall Quay, reducing office development to accommodate two hotels of 201 and 135 bedrooms.
It is also developing Staycity Group Ireland’s first Wilde, a 288-room premium aparthotel, and the company remains positive about the sector.
“Wilde combines boutique design with the flexibility of apartment-style accommodation, appealing to both corporate travellers and extended-stay guests. The North Docklands location serves both well,” Ronan said.
“Our agreement with Staycity reflects our confidence in Dublin as a prime destination for hospitality investment, and we will continue to look for opportunities where hospitality and tourism support well-connected, mixed-use urban districts.”
Elsewhere, Aviva Life & Pensions Ireland is seeking an experienced operator for a proposed 184-bedroom luxury hotel near Grafton Street, with a restaurant, bar and commercial space, plus 10 apartment suites.
“We are currently engaging with potential operators. We believe the development represents an attractive opportunity given its prime city centre location,” Aviva Life & Pensions Ireland Head of Property Development and Planning Patrick Roe told Bisnow.
Hospitality operator Bob W has secured a new-build development in Dublin for a 105-unit aparthotel in partnership with Red Rock Developments, which will redevelop a vacant commercial site at 49-51 Pleasants Street into a 43,500 SF hospitality property in the Portobello neighbourhood.
Scheduled to open in the second half of 2028, Bob W Dublin Portobello will offer a mix of studios and a one-bedroom apartment, with most units featuring kitchen facilities, plus a coworking lounge, laundry facilities, luggage storage and bicycle parking.
“Portobello is exactly the kind of neighbourhood we look for. It’s full of character, well connected and has a strong local identity,” Bob W Chief Development Officer Philip Grace said in a statement. “We're increasingly working with developers from the earliest stages of new-build projects, alongside our established expertise in conversions and repositioning.”
German property investor KGAL plans to replace a Dublin city centre office block with a hotel after concluding that neither extending the office nor redeveloping the site for housing would be financially viable.
“From a supply perspective, not a lot of hotel rooms are going to open this year. There’s been a bit of lag,” JLL Head of Capital Markets and Hotels Daniel O'Connor said.
“We were anticipating over 1,000 hotel rooms to open in Dublin in 2026, but our latest forecast is only about 600. We thought we would get to 30,000 rooms, with the biggest project slated as a 2026 opening, the 400-room Sofitel Hotel at Dublin Airport, being developed by Arora, now likely to be Q1 2027.”
In terms of wider growth, he pointed to budget hotels and hostels, with three large hostels due to open in Dublin next year: the Grand Canal Dock Hostel by Marlet, a project from Firethorn and SW3 Capital off O’Connell Street, and a project on Foley Street by Bain Capital. Combined, that is about 400 hostel rooms and around 1,500 beds.
“I think we're at such high occupancy already that these hostels and budget hotels will be mopped up by the demand,” O’Connor said. “But the challenges are more in investment. We've seen less hotel sales close in Ireland in 2026, and it's down to two things: product and the capital markets.”
However, September brought the launch of the Conrad Hotel, and JLL put on the market The Morrison, which is another five-star hotel in a city of only 11 five-star locations.
O'Connor said there are about €500M of hotel sales at various stages, so 2026 is going to be a year where the market catches its breath before improving again in 2027.
He said that for the circa €130M Conrad, owned by European hotel investment vehicle Archer Hotel Capital, backed by APG and GIC; Zetland Capital's The Morrison, with a guide price of €90M to €95M; and the all-electric Premier Inn, there has been an international flavour to interested parties, but he conceded that “money moves” and global buyers could shift to London, Paris or elsewhere if they perceive better value.
)
At Clerys Quarter, JLL is marketing the new 229-room Premier Inn Dublin City Centre for €67M. The hotel is being sold on a forward basis, with practical completion expected in early 2027. The property will be let to PI Hotels & Restaurants Ireland, part of Whitbread, on a 30-year lease.
However, the investment activity comes against a more complicated backdrop for the tourism industry, which is warning that Ireland can’t take its North American visitor market for granted.
Figures from the Central Statistics Office showed visitors from North America fell 3% in August compared with the same month in 2025, while spending from the region also declined 3% to €262M.
But Savills Director Hotels and Leisure Dublin Tom Barrett said far too much is being made of figures that actually reflect a very tough comparison period.
“If you look back to last year, we had an NFL game in Dublin where we had 80,000 people in the stadium, of which 25,000 or 30,000 were Americans,” he said. “You take that out, and we're flat or up. The market is in pretty good health.”
He added there is a series of major events scheduled for Ireland in 2027 and 2028.
He also said Dublin has been undersupplied in the budget category compared with other European cities, including UK cities like London, Edinburgh and Manchester, which have around 30% of supply in the budget sector, whereas Dublin was at less than 5%.
“There’s Dublin's affordability versus Edinburgh, Copenhagen, Amsterdam, Barcelona. It's becoming more affordable and looks like better value,” he said. “But what Dublin is missing is a luxury or palace hotel. London has had an influx of budget, but also an influx of the Shangri-Las, the Rosewoods, the Peninsulas, and Dublin has none of that.”
)
)
)
)
)
)
)
)
)
)
)
)