Dublin hotels experienced unprecedented growth over the last five years
The Dublin hotel sector has experienced unprecedented growth over the past five years while virtually no additional supply was seen during this period.
Industry leaders attended a breakfast briefing hosted by Crowe Horwath and Cushman & Wakefield at the Conrad Hotel yesterday where the theme was ‘What is the impact of new supply on the hotel market?’
The event examined the opportunities and challenges facing new hotel projects and the impact of new supply on current profit levels within the sector.
Over the last five years, average room rates rose by €47 and occupancy was up 12%. This resulted in an average rise in profit per room of €12,000.
These figures are a result of the shortage of hotel rooms available as demand continues to rise - particularly among international tourists, it was noted by industry guest Aiden Murphy.
In 2016, the Dublin hotel market recorded an 82% occupancy rate. It is expected that 4,000 additional hotel rooms will be delivered over the next five years.
The market will have to grow 15% selling an extra 845,000 rooms by 2021 just to maintain demand.
