Category: Hospitality

Breanagh Catering, the company behind Copper Face Jacks on Dublin’s Harcourt Street, has released figures that show the nightclub’s business improved dramatically in the 12 months to January 3 this year, as revenues increased almost ten fold from €1.39 million to €11.35 million.

This comes after Breanagh Catering, owned by Cathal and Paula Jackson, took a revenue hit of €20.7 million during the two years of the Covid pandemic.

 

Nightclub And Bar Sales

As reported by RTE, Breanagh Catering saw pre-tax profits of €3.11 million in the most recent financial year following pre-tax losses of €522,782 in the prior year.

The firm reached nightclub and bar sales of €10 million this year compared to €1.33 million for the prior 12 months.

 

Breanagh Catering

Breanagh Catering boosted its employee numbers last year from 36 to 137. The firm increased pay to directors to €1.35 million from €254,832.

Furthermore, Breanagh Catering payed €1 million towards the directors’ pension pot following no contribution the prior year.

 

Nightclub Scene

Copper Faced Jacks was opened in 1996 and has become an integral part of Dublin’s nightclub scene.

The popular late night venue hit the market alongside the Jackson Court Hotel in March of 2019. However, owners Cathal and Paula Jackson ultimately decided not to sell the venue.

 

“Formally Withdrawn”

According to The Irish Times, in a memo to staff, the Jacksons stated, “As you know, Cathal had some health issues late last year and reluctantly made the decision to put Coppers on the market. “The proposed sale was launched in March of this year and attracted strong interest. Several approaches were made.

“However, we are pleased to confirm that as Cathal has now recovered his health completely, he has decided to stay actively involved in the business. As a result, he has now formally withdrawn the property from sale.”

New research from OpenTable has found that 50% of Irish diners plan to visit more restaurants in January in 2024, compared to the same month in 2023.

Furthermore, it is estimated that 35% of Irish diners plan on spending a little more this January, compared to January 2023, with an average of €59 per person, per meal.

Fifty one per cent (51%) of Irish diners will consider going vegan or vegetarian as part of Veganuary or a healthier diet in 2024.

 

Local Restaurants

In November, OpenTable released research that showed that over half (58%) of diners in Dublin would rather pay more to dine at a local restaurant, compared to 23% who would prefer to spend less at a restaurant further away.

Nearly a third (29%) of Dubliners cite that they choose to dine locally due to great offers, dining experiences, and set menus.

 

January Dining Experiences

OpenTable has noted that restaurants throughout Dublin have created new January dining experiences, ranging from ‘tasting menus to sharing feasts’.

A selection of restaurants offering January deals can be found as follows.

 

The Ivy Dawson Street

The Ivy Dawson Street is inviting visitors to step back in time, to 1917 – the year that the Ivy made its debut – with its 1917 Specials Menu.

Customers can enjoy tastes of this era with special dishes for €19.17 each.

 

Ukiya

For just €50 per person, diners can enjoy a new private dining experience in the Kraken Den in Ukiya. This includes a set menu, karaoke, and sound system for up to three hours.

 

NoLIta

NoLIta is offering an Italian-inspired brunch menu including ‘bottomless Mimosas’ during the weekend, for just €19.95 per person.

 

Peperina City Bistro

Peperina City Bistro will give diners the opportunity to enjoy an Argentinian sharing feast for €39 per person, including empanadas and a traditional Argentinian charcoal asado [barbecue] grill.

The US State Department’s Bureau of Overseas Buildings Operations (OBO) has announced that it has completed the congressional notification process to proceed with the site acquisition for a new US Embassy building in Dublin, which will replace the current chancery.

The State Department expects to close on the purchase of the 4.2-acre site, formerly the location of the Ballsbridge Hotel (Old Jury’s), in Dublin 4, within the next 60 days.

 

‘Extraordinary Bond’

“We happily have outgrown our current historic home, and investment in a new building represents both the extraordinary US-Irish bond of today and the potential tomorrow brings,” said Claire D. Cronin, US Ambassador to Ireland.

“As we continue to deepen and expand our ties on multiple levels, I hope the new embassy will become a beacon for future generations, who will seek to build on the promise of a prosperous US-Irish relationship.”

 

Construction Process

The seller will demolish the currently vacant hotel, following the closing of the purchase. Once the acquisition is complete, the design, planning and construction process will begin.

 

Diplomatic  Activity

Diplomatic activity will continue in the current embassy chancery, at 42 Elgin Road, Ballsbridge, until the new embassy is complete.

OBO and the US Embassy Dublin plan to work closely with local partners, to ensure that a suitable plan for the site is developed once the embassy is relocated.

 

‘Key Milestone’

“Acquiring this new site is a significant step forward that marks a key milestone in creating a secure and functional space that will endure for years to come,” said Will Moser, OBO director.

“I look forward to seeing the vision for the new embassy come to life.”

The Irish hotel sector saw €350 million in transactions in 2023 – 30% below the historical average, according to Savills Ireland.

The property advisors noted that Irish hotel transactions declined in 2023, largely due to fewer Dublin sales and no Dublin investment activity.

 

Supply Constraints

The figures show that just 1,200 hotel rooms were added in Dublin in 2023, as supply remains constrained.

Additionally, there was no single hotel sale for €50 million or more in 2023, but Savills claims that regional transactions were very strong.

 

Regional Transactions

Although inflation and higher interest rates pushed yields up and reduced the value of investment properties, Savills noted that demand for regional hotels persisted throughout the year. Strong trade, attractive yields, and the significantly higher replacement costs of regional hotels attracted owner operators, hotel groups, and high-net-worth individuals into this segment of the market, according to the property advisors.

 

Pre-Covid Comparison

Dublin hotel occupancy was back above 80% for 2023, in line with pre-Covid occupancy rates.

The 2023 average daily rate (ADR) of €180 per room was 27% above 2019 levels.

Some regional hotel trade was even stronger, with revenue per available room (RevPAR) for a luxury set coming in around 50% higher than it was at 2019 levels.

 

Asset Class

Savills noted that hotels have become a more mainstream property investment class in recent years, and Dublin hotels are now owned by the likes of Aviva, Blackstone, Deka, DWS and Union.

The emergence of operators with institutionally acceptable covenants has helped to grow the asset class, with Dalata, Premier Inn and Staycity properties selling at yields of between 3.60% and 5.00% in recent years.

 

Emergency Accommodation

An estimated 12% of all beds in Fáilte Ireland-registered properties were contracted to the Irish State for the provision of emergency accommodation as of the end of last year.

Additionally, a number of regional counties had over 20% of capacity outside of ‘normal’ and tourist use.

 

Longer-Term Business

In regional Ireland, hotel beds were mainly occupied by Ukrainian guests.

In contrast, the majority of the contracted accommodation in Dublin was for asylum-seeker and homeless accommodation, which is seen as longer-term business. Savills believes that most of this Dublin accommodation will not return to hospitality use in the short-to-medium term.

 

Hotel Pipeline

Although it is difficult to predict new supply, Savills expects average growth of only 3.0% per annum in the Irish hotel pipeline over the next five years.

This would lead the total stock of hotel rooms in Dublin to exceed 30,000 by 2029.

“Twenty twenty-four [2024] transactional activity will grow from last year’s levels, with signs that interest rates have plateaued, providing investors and prospective buyers with firmer foundations on which to make decisions,” said Tom Barrett, director of hotels and leisure at Savills Ireland.

 

VAT Rate

From its work with Dublin hoteliers and looking at the strong events pipeline, Savills predicts some small RevPAR growth in the year ahead.

While last year’s VAT rate increase from 9.0% to 13.5% was a ‘headwind’ to the ADR, Savills claims that the market was supported by a slowdown in the pipeline of new hotel openings, as well as inbound travel, which is now 2% higher than it was before the pandemic.

“With rising energy costs putting pressure on margins, investing in sustainable practices will enable hotels to reduce their costs, improve profitability and boost their brands,” said Barrett.

A comprehensive Outlook 2024 annual report has been released by commercial property specialists CBRE, containing predictions for each sector of the Irish property market in the year ahead.

The property consultants note that while there will be some continued challenges, there is also exceptional opportunity in commercial property over the next 12 months, as yields and pricing start to bottom out and financing costs decline.

The report indicates that the hotel market remains an undersupplied sector.

 

‘Digitalisation And Sustainability’

“Valuation declines were the key theme running through real estate markets in 2023, but base interest rates have stabilised and are likely to decline over the course of the next year, which should be positive for valuations and transactional activity,” said Colin Richardson, director and head of research at CBRE.

 

“Digitalisation, sustainability, and the adaptive reuse of older buildings are all key themes in this year’s report.”

 

Hotel Occupancy Rate

In the year to date to November, Dublin achieved the highest hotel occupancy rate out of 35 European markets, according to data published by STR.

Dublin also ranked seventh highest in terms of revenue per available room (RevPAR).

 

Potential Record Year

Total hotel transaction volumes in 2023 in the Irish hotel market were €240 million, with a further €75 million of hotel development site sales.

When considering the number of ongoing high-value sale processes, CBRE predicts that hotel transaction volumes will be significantly higher in 2024, potentially with a record year of sales in store.

 

Undersupply Of Beds

Yields for prime-leased hotels are now stable, as opposed to the wider property market, where asset-pricing is largely trending weaker.

CBRE predicts that hotel trading performance will likely remain strong in 2024, given the undersupply of beds in the market.

Savills and CBRE have been jointly appointed by JD Wetherspoon to dispose of the group’s regional portfolio of licensed properties in Cork, Waterford, Galway and Carlow.

The entire portfolio is guiding in excess of €10 million.

‘Extensive Investment’

“The Wetherspoon portfolio offers a rare opportunity to acquire an exceptional collection of landmark licensed properties in some of the most coveted locations in the country,” said Stephen McCarthy of Savills.

“Accordingly, we anticipate the portfolio will appeal to a broad cross-section of hospitality groups seeking to scale their existing operation and benefit from the extensive investment which has already being committed to these assets.”

‘Turnkey Condition’

Three of the properties are trading and comprise An Geata Arundel, in Waterford, the Linen Weaver, in Cork, and the Tullow Gate, in Carlow.

Savills has noted that each of the properties has undergone extensive refurbishment and presents in ‘turnkey condition’.

City Centre Location

The fourth property is the former Carbon Nightclub – on 19-21 Eglington Street, in Galway – which is not trading, but has recently been granted planning permission to permit licensed premises and restaurant use.

Savills noted that, due to its prime city centre location, it is likely that the site will also appeal to developers.

The portfolio is being offered for sale by private treaty in one or separate lots.

‘Unique Opportunity’

“The trading properties in Cork, Waterford and Carlow are presented in excellent condition, offering a rare opportunity to acquire the businesses individually or as a portfolio,” said John Hughes of CBRE.

“The property in Galway city centre presents a unique opportunity to develop a landmark licensed premises or alternative uses, in the heart of the city.”

The Purty Kitchen in Dublin recently launched a new al fresco dining space which is suitable for year-round outdoor dining.

The popular restaurant and bar is located in Dun Laoghaire’s oldest surviving premises.

300 Year History

The gastro pub was taken over by hospitality veterans Mark Heather and James Burgess in recent times.

Speaking to Hospitality Ireland last year, Heather said the team wanted the premises to stay true to its near 300 year history, but bring the pub into the twenty-first century.

Rich dark woods and warm ambient lighting were introduced to complement the existing hardwood floors.

‘Old Port Town’

“We removed the many split levels and raised areas to increase space and open up the room, to boost the aesthetic and atmosphere,” said Mark Heather last year.

“The artwork adorning the walls reinforces the history of the old port town of Dún Laoghaire.”

The Courtyard

The Purty Kitchen has now recently launched a new, year round al-fresco dining area.

The Purty Kitchen said the ‘The Courtyard’ will allow customers to enjoy all the benefits of eating outdoors, while remaining protected from the unpredictable Irish weather.

‘Beautiful Al-Fresco Setting’

“Dining outdoors has always been a memorable experience for me and being able to provide a beautiful al-fresco setting for our customers, both existing and new, fills us with joy,” said Mark Heather.

“The Courtyard menu has been created by our talented Chef and team and we look forward to welcoming the local community, and visitors from afar, in to experience The Courtyard.”

Liam Forde has been named the new executive chef at Reeds Restaurant, in the Ferrycarrig Hotel, and has already unveiled a brand-new seasonal menu filled with award-winning Wexford produce.

Wexford chef Forde previously ran his own restaurant and has held executive-chef positions across a range of award-winning dining venues.

Top Five

The award-winning Reeds Restaurant at the four-star Ferrycarrig Hotel has been awarded two AA rosettes for many years in a row: 2017, 2018, 2019, 2020, 2021 and 2022.

Reeds Restaurant was previously named Best Hotel Restaurant in Wexford for two years and listed in the top five restaurants in Leinster by the Restaurants Association of Ireland.

The restaurant has also been recommended by Georgina Cambell and Lucinda O’Sullivan.

‘Winter-Warming Flavours’

Overlooking the Slaney River estuary, Reeds Restaurant will include award-winning Wexford produce on its new winter menu, as every dish thereon features ingredients from local food businesses.

“My philosophy around great food is, if the quality is there in the ingredients, you don’t spoil it,” said Forde.

“This menu for the winter months has been carefully considered. It features a variety of in-season local produce, there is some game, there is quite a lot of seafood, and some delicious winter-warming flavours.”

Dry Dock Bar Menu

Forde and his team claim that winter will be an exciting season for the Ferrycarrig Hotel because it will launch the new Dry Dock Bar Menu in December and follow that with a new Sunday lunch experience in Reeds in January 2024.

Reeds Restaurant is open seven days a week for dinner.

August was the busiest month for Irish restaurants in 2023, according to new research from AIB.

The data was compiled from over 800 million card transactions carried out by AIB customers – in store and online – from January to November 2023 and has been anonymised and aggregated.

Spending In Pubs

The report shows that bank holiday weekends are big drivers of spending in pubs.

The busiest day for pubs was St Patrick’s Day, 17 March (+218% of the daily average), followed by Sunday 29 October (+156% of the daily average) and Sunday 6 August (+152% of the daily average).

According to the data, men spent more than women in pubs (67% men, 33% women).

Holiday Season

Earlier this month, AIB released figures from 2022, which showed that the busiest day of the holiday season for pubs was Friday 23 December, with €5.2 million spent in total.

The next-busiest day for pubs was Saturday 17 December (€4.8 million), followed by New Year’s Eve (€4.3 million).

Top Spenders

The AIB Year in Review Spend Trend shows that the top three counties for daily spending were Wicklow (€26.13), Meath (€26.02) and Kildare (€25.94).

The lowest-spending counties were Donegal (€20.18), Leitrim (€21.57) and Monaghan (€22.28).

People from Wicklow had the highest average daily spend, while people from Donegal had the lowest.

‘Strong Performances’

“[The year] 2023 has seen strong performances for many sectors, and it’s great to see the resilience of businesses that faced their fair share of challenges this year, from cost-of-living pressures to severe weather events and a wet summer,” said John Brennan, AIB’s head of SME banking.

“December is set to be a busy month for retail and hospitality, meaning many businesses will finish the year out strong.”

The Irish hotel industry returned to pre-pandemic performance levels in 2023, according to the latest insights report from Savills Ireland.

The property advisors noted that the industry is witnessing a ‘cautious yet optimistic outlook’ for 2024, with forward bookings indicating strong months ahead, driven by major events such as the UEFA Europa League Final and concerts by Taylor Swift and Coldplay.

‘Stronger Pricing’

“Occupancy rates have returned to their 2019 levels with even stronger pricing, reflecting the industry’s adaptability and resilience,” said Tom Barrett, director and head of hotels and leisure at Savills Ireland.

“While we faced cost pressures across various sectors, including payroll and energy, the growth in top-line revenue has largely offset these challenges, making 2023 a positively memorable year for many hotel operators.”

Challenges

However, Savills warned that surpassing the €326 average rate achieved in Dublin during the Notre Dame v Navy American football game in August 2023 remains a challenge.

The investment market in prime Dublin hotels has also seen shifts, with yields moving from 3.6% in early 2022 to around 4.75%/5.0% presently.

Dublin Hotel Sector

“The gap between buyer and vendor expectations has widened, influenced by frequent interest rate hikes throughout 2022 and 2023,” said Barrett.

“This has temporarily slowed down investment transactions in the Dublin hotel sector.”

‘Fragmented’

Savills claims that, despite lower year-to-date transaction levels – compared to the €400 million average of recent years – significant activity was noted in regional Ireland, with key transactions including the sale of the Imperial Hotel Cork and several other properties in the €10 million-to-€30 million price range.

The property advisors noted that the Irish hotel ownership landscape remains ‘fragmented’, but – along with the large, high-profile groups of Dalata and Tifco – others continue to expand, with Cliste, JMK, MHL, Staycity and TMR all with over 1,000 rooms open, or in the pipeline by the end of 2023.

‘Attractive Proposition’

“With strong cash flows and high barriers to entry, hotel property continues to be an attractive proposition for investors,” said Barrett.

“The industry’s adaptability and robust performance, even in challenging times, underscores its potential for sustained growth and resilience.”

Looking  Ahead

Looking ahead to 2024, Savills noted that the Irish hotel market anticipates significant transactions, such as the completion of Press Up Hotels’ majority-stake sale to LHC, the potential sale of Tifco’s portfolio, and some off-market transactions.

Savills claims that these developments, along with the ongoing interest in converting office spaces to hotels, underline the sector’s attractiveness as a high-potential investment avenue.