20 pubs sold in Dublin during 2024 for combined cost of €70m
McSorley’s Ranelagh was sold in 2024 to Grand Slam Bars for €5.5 million
Twenty pubs were sold in Dublin during 2024 with a total market value of approximately €69.6 million, a significant increase from 2023 when the same number of sales generated €47.3 million, according to Lisney.
A total of 21 licensed premises were publicly offered for sale in Dublin during 2024, a notable reduction on the 34 offered publicly in 2023. Publicans remained the dominant purchaser class, accounting for 55% of volume and 37% of value. Developer activity also increased representing 20% of volume and 19% of value.
Despite accounting for only three transactions in 2024, private equity investments represented 39% of the total market value. Developer activity saw a significant increase in 2024, representing 20% of transaction volume and 19% of total value. This increased appetite from developers was largely driven by one key transaction, the Dunnes Stores acquisition of Union Café & Kennedys Bar for €7m.
Of the properties publicly offered for sale in 2024, six were directly linked to challenges arising from the conclusion of the debt warehousing scheme. Operators faced a number of obstacles last year, many of which will persist into 2025, including the 6.2% increase in the minimum wage which has intensified financial pressures.
The main factors driving supply in 2024 were retirement and business realignment, with 80% of the sales completed publicly being retirement driven. By year-end, nine pubs had sold publicly with a further 11 sales concluded off-market.
Strong off-market activity
Appetite remained for well-located Dublin city premises as illustrated by the sales of Bar Eile cornering Baggot Street and Mespil Road, Foley’s on Merrion Row, Cassidy’s on Westmoreland Street, Cassidy’s on Camden Street, McSorley’s Ranelagh, and Devitt’s on Camden Street. Of these six sales five transacted off market.
Off market activity again featured strongly in the licensed premises market in 2024, accounting for 55% of transaction volume and 76% of total value These transactions underscore a growing preference for discreet sales processes, particularly for high profile premises for which there is known demand.
By year end there were a further nine sales agreed which bodes well for early 2025 activity.
Business challenges
According to Lisney, challenges faced by the license premises sector during 2024 included staffing, rising utility costs, VAT on food sales, group debt warehousing and the availability of bank finance.
Lisney says the 6.2% increase in the national minimum wage to €13.50 in January 2025, alongside the introduction of additional labour-related measures such as statutory sick pay, increased public holidays, pension auto-enrolment and PRSI increases, has further contributed to the financial pressures faced by operators.
The VAT rate on the sale of alcohol has remained at 23% and the VAT rate on food at 13.5%, despite the Licensed Vintners Association (LVA) and the Vintners Federation of Ireland (VFI) lobbying the government for a return to the 9% rate on food sales in an effort to protect jobs.
Whilst many licensed premises that enjoyed viable business models with reasonable future trading prospects continued to trade successfully, there were some unavoidable casualties, primarily stemming from the ending of the debt warehousing scheme in May 2024.
Businesses that had not engaged with Revenue to clear their legacy debt or to agree PPA’s (phased payment agreements) by the 1 May 2024 were in a number of cases unable to trade out of these difficulties.
Of the properties brought for sale publicly in 2024, six were directly attributable to the challenges stemming from the debt warehousing scheme’s conclusion.
Licence values
Licence values remained stable throughout 2024, mirroring the values achieved throughout 2023 at an average of €50,000 to €55,000 per licence.
According to Lisney, purchaser appetite was driven by the off-licence sector of the market, predominantly for the creation of new retailing concerns such as supermarkets and convenience retail outlets. Demand from forecourt retailing remained at almost nil for the second year running, perhaps indicating that operators within this sector had achieved their target of licensing their existing identified stations over the past number of years.
Lisney anticipates future supply of licenses will mostly likely be from businesses that have become unviable or that are located within lesser populated locations. Typically, the delivery of licences from such sources ultimately results in a repurposing of the property for other uses.
In Q4 of 2024, Lisney noticed an increase in licensing queries posed from the Restaurant Sector of Ireland. A number of operators in this sector feel that moving from a traditional ‘restaurant’ to a ‘gastro bar’ may assist in a reduction of staff costs. However, the true demand from this sector of the market remains to be seen.
The provincial market in 2024
The provincial licensed premises market experienced a surge in activity, highlighted by several high-profile sales, particularly within the well-established provincial cities. The market saw a notable shift with the JD Wetherspoon group’s sale of four premises in Cork, Galway, Waterford, and Carlow. Of the properties offered, three were successfully transacted, achieving a total combined value 56% below the asking price – reflecting a recalibration of market expectations.
Appetite outside of populated cities and large towns remained subdued, with little purchaser demand. Closures of non-viable businesses within sparsely populated rural areas continued, and this sector of the market struggled persistently. The availability of Publicans Licences from these locations will likely increase.
Well-established regional tourism areas continued to perform relatively well, maintaining their ability to conduct meaningful volumes of seasonal trade. This sector continued to attract interest from both existing operators and potential new entrants, buoyed by the overall growth in Ireland’s tourism sector.
Overall, the 2024 provincial licensed premises market in Ireland was characterised by cautious transactions, ongoing challenges in rural areas, and emerging opportunities in property repurposing and private equity investment. The market continued to favour well-located, quality premises in populous areas and established tourist destinations, while the future of many rural pubs remained uncertain.
Outlook 2025
According to Lisney, demand in 2025 is expected to concentrate on large suburban venues and prime city centre locations, where the potential for premium pricing will offer greater flexibility to adjust prices in line with cost inflation.
Purchaser profile will continue as per previous years, with publicans being the dominant purchaser class. Developers are expected to remain active, particularly in pursuing suburban sites large enough to accommodate the critical number of units needed to justify development. However, licensed premises sites are typically only suitable for apartment projects, and demand for such sites outside prime areas, except for social and affordable housing, has declined significantly due to rising construction costs.
The trend of off-market sales is expected to continue into 2025, particularly for high-value city centre properties. With a limited but highly active and well-funded buyer pool, these discreet transactions align with the preference of many publicans who prioritise privacy.
According to the Licensed and Leisure Team at Lisney, the outlook for 2025 is strong:
“The 2024 Dublin licensed premises property market saw a steady flow of transactions, with sales volume reflecting the activity levels of 2023. We predict continued demand for city centre locations, though a softening of profitability is expected for certain businesses and trading locations. This is due to rising staff costs and increases in product prices that cannot be fully passed onto consumers. While most businesses will remain viable, operators are likely to see lower returns in 2025, which may influence decisions to sell versus hold. As a result, we anticipate a decline in demand for some suburban food-driven businesses that have had to absorb cost pressures.”
