International investors have increased their interest in the Irish hotel sector with Dublin now the the eighth most attractive European city for hotel investment.
A new survey from Deloitte shows hotel room rates increased in the first ten months of 2023, with an average daily rate of €210 in Dublin City Centre, followed by €165 in the surrounding Dublin area and €160 in the rest of Ireland. However, the price increases are not deterring customers with hotel occupancy levels expected to be retained this year. The greatest increase in occupancy levels on a year-to-date basis was recorded in 5-star luxury hotels in Dublin.
More than 1,800 new hotel rooms completed construction last year, bringing total stock to an estimated 66,200 as of December. According to Fáilte Ireland research, 12% of all registered tourism bed stock is under contract to the state.
Rebecca Robinson, Director in Corporate Finance at Deloitte Ireland said: "While many hotels are benefiting from government contracts with business spread over a consistent 12-month period - which significantly combats seasonal fluctuations that would otherwise be experienced - it also means there is reduced availability of hotel bedrooms for tourism and other purposes, including corporate or leisure."
