Boom time at Irish hotels as occupancy exceeds 90%

Revenue per available room (RevPar) across the State’s hotels increased by 16.1 per cent in the year to May 2018, driven by an almost threefold growth rate outside Dublin. Average daily room rates over the same period grew by 12.7 per cent to €144.55.

Across the State, revenue per available room, a key metric in the hotel business calculated to incorporate both room rates and occupancy, grew 16.1 per cent in the year to the end of May 2018 with properties outside Dublin growing 18.3 per cent.

Figures from travel research firm STR show RevPar outside Dublin growing to €92.70 while in Dublin, a 13.6 per cent boost grew RevPar to €146.96.

Average daily room rate (ADR) in the period increased 12.7 per cent across the State as a whole to €144.55. The average rate in Dublin stood at €162.36 while in the rest of the Republic it was €115.62.

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Again, growth was vastly improved on last year when ADR improved by 5.8 per cent across the State as a whole.

Occupancy

Occupancy was also strong with growth outside Dublin outstripping the capital. In actual terms however Dublin hotels still have higher occupancy.

In May, Dublin hotels had an occupancy rate of 90.5 per cent, up 1.2 per cent on the year, while hotels outside Dublin had occupancy of 80.2 per cent, up 5.3 per cent on the year.

In a note to clients, Davy analysts Joseph Quinn and David Jennings noted that "the Irish summer is off to a strong start, with May continuing the year to date trend of strong RevPar growth in both Dublin and regional Ireland".

The analysts compared the Irish picture to London, where occupancy in particular is suffering, with May the 12th consecutive month with year on year occupancy decline.

STR’s data sample in the hotel industry comprises more than 60,000 hotels and 8 million rooms around the world. At an event last year the company predicted that the average daily rate of a hotel room in Dublin would reach just under €150 a night by 2021.