Dublin hotel room supply expected to jump 15% by 2019
In terms of star rating, four-star bedrooms appear to be the most popular
A computer-generated image of the Clayton Hotel on Charlemont Street, Dublin 2, which is currently under construction
About 3,500 new hotel bedrooms will be built in Dublin by the end of 2019, with almost 90 per cent of new supply coming from new hotels. That increase marks a 15 per cent jump in supply on the existing stock.
According to research by real-estate company Savills, the majority of planned developments in the next two years will take place in Dublin 1 and 2, followed by Dublin 8 and Dublin Airport. The most significant percentage increase of Dublin hotel stock is expected to be seen in Dublin 2 in 2018, with an anticipated increase of 35 per cent.
Next year more than half of new bedrooms will come from new hotels, while the remaining 45 per cent will come from extensions to existing hotels.
In terms of the increase in stock by star rating, four-star hotel bedrooms appear to be the most popular, with a stock increase of 65 per cent in 2017, 65 per cent in 2018, and 50 per cent in 2019.
“Most Dublin hotels trade in both the leisure and corporate markets, and hotel development is also targeted at both markets,” said Tom Barrett, director of Savills Hotels and Leisure. “The 2018-19 pipeline will bring new supply to the aparthotel and budget sectors, which are currently under-represented in Dublin.”
Hotels under construction include the Clayton Hotel on Charlemont Street and the Maldron Hotel on Kevin Street, while extensions are being undertaken at The Dylan in Dublin 4 and the Merrion Hotel in Dublin 2.
According to data published by STR last week, the average daily rate for a room in Dublin in the 12 months to the end of April was €122.38.
Commenting on the Savills research, Goodbody analysts said, “while the Dublin hotel market is still set to grow . . . we would be conscious of the market understating the impact of the level of supply coming on to the market over 2018 and 2019”.