The Dublin licensed property market entered 2022 in optimistic mood, buoyed by the many high-profile sales achieved during 2021, when the market rebounded despite the restrictions imposed by the Covid-19 pandemic. To date in 2022, there have been 27 pubs sold in Dublin with a capital value of just over €91m, slightly ahead of the figures for 2021, when 23 pubs changed hands with a capital value of €85.65m.
The relaxation of public health restrictions in the first quarter of 2022, when many of the temporary trading constraints imposed by Covid-19 were removed, allowed bars and restaurants to return to a more normalised trading environment. In addition to that, improving consumer sentiment and the volume of savings on account equated to a rapid rebound in business, with many publicans reporting business at, or exceeding, pre-pandemic levels of turnover.
The start of the year witnessed a brisk level of activity highlighted in particular with the completion of the sale of the TP Smith portfolio (The Auld Dubliner, The Norseman, TP Smith’s, Laguna and The 44). This portfolio of four Dublin pubs and a small hotel in Swords, Co Dublin, was sold by veteran publican brothers, TP and Peter Smith, and acquired by London-based international fund Attestor Capital in an off-market transaction agreed and signed in December 2021 for a sum that was undisclosed sum but is speculated to have been €34 million.
That acquisition by Attestor Capital was preceded by their acquisition in December 2021 of Camden Palace, Camden Street and Lundy Foots, Temple Bar from publican Ross Murray for a rumoured price of about €27 million.
Attestor Capital were active again during the summer, when they acquired The Bleeding Horse, Camden Street for a price in excess of €9 million, again in an off-market transaction. These acquisitions highlight the continued focus of international funds and investors on the Dublin pub property market.
To illustrate this further, two other Dublin pubs, namely The Red Parrot on Dorset Street and Baker’s on Thomas Street, were acquired by an investor from Tel Aviv.
Other notable sales to conclude during the first half of 2022 involved the popular Ashton’s, Clonskeagh for more than €3 million and Lamb Doyle’s, Sandyford for a price in the region of €2.2 million.
Both of these properties were acquired by Paddy McKillen jnr and Matt Ryan’s Press Up Hospitality group. McKillen jnr also acquired the former Buck Whaley’s nightclub on Leeson Street for about €3 million and has recently been active on the sell side, placing The Lucky Duck, Aungier Street, on the market with a guide price of €2.5 million.
Other pubs to change hands during the year include the famous Fitzgerald’s, Glasthule, which was sold for about €1.65 million; Becky Morgan’s, Grand Canal Street for around €1.4 million; The Waterside, Howth for about €2 million; Nancy Hands, Parkgate Street for around €2.2 million and Sandyford House, Sandyford for about €4 million.
While activity in the second half of the year slowed considerably, the remaining two pubs in the Quinn Hospitality portfolio – JW Sweetman, Burgh Quay and The Barge, Charlemont Street – were offered for sale in the autumn, with JW Sweetman purchased for more than €5 million while The Barge, at the “contract-signed, awaiting-closing stage”, achieved just below the guide price of €3.7 million.
There are several other pub sales either sale agreed and close to signing or at an advanced stage of the negotiating process.
There were some pub refurbishments completed during the year, such as The Greedy Eagle (former Eagle House) in Glasthule, which is owned and operated by the Loyola Group. Noel Anderson reopened his most recent acquisition, The Blackrock in Blackrock Village, which he acquired from Wetherspoons, while McKillen jnr reopened Larry Murphy’s on Baggot Street after extensive refurbishment and renamed it Thomas Roddy Maher’s.
A trendy new bar and restaurant called Hyde, located just off Grafton Street, opened in November after a lengthy fit-out period. A feature of the market during 2022 were the number of off-market deals, which reflects an underlying interest for pub properties that are in the right locations and offer a long-term return on investment.
There are, however, some concerns on the horizon, such as the rapidly rising rate of inflation, energy costs, food and beverages cost increases, skilled staff shortages and rising interest rates, which pose new challenges for the sector. Consumer sentiment has also waned.
[ Market for development land robust despite headwindsOpens in new window ]
[ Value and opportunity underpin resurgent demand for retail assetsOpens in new window ]
The traditional pub business model revolves around high customer footfall at weekends and peak seasons supplemented by major sporting/concert events. It is evident that following the Covid-19 crisis, more pubs are prepared to adapt their business models quickly to cater for current trends. Many do not open for a full seven days and have restricted their opening times as they do not have the staff to cover all shifts.
New technology and sustainability will feature in the recovery plans of progressive operators and a focus on local food, beer and whiskey/spirit producers and other green initiatives will be a key differentiation criterion in the years ahead.
John Ryan is head of the licensed and hospitality division at Bagnall Doyle MacMahon
