Dublin hotels take revenue hit as more rooms become available
Decline comes as the local market has expanded by 1,000 rooms in the past 12 months
This was the second successive month in which RevPar declined, having slipped 2.7 per cent in April
A rise in the number of hotels opening in Dublin is having an effect on revenues, new figures indicate.
Revenue per available room (RevPar) – a key metric in the hotel business which assesses a hotel’s ability to fill its available rooms at an average rate – fell by 5.9 per cent last month versus May 2018.
This was the second successive month in which RevPar declined, having slipped 2.7 per cent in April.
Average Daily Rate (ADR), another key metric, was 5 per cent lower last month, according to data from STR.
The decline comes as the Dublin market has expanded by 1,000 rooms in the past 12 months, a rise of 4.7 per cent versus the prior year.
In the wider Irish market, RevPar was down 2.6 per cent year-on-year.
Commenting on the figures, Philip O’Sullivan of Investec said there is no indication that demand for hotel rooms has weakened.
He added that the latest data shouldn’t necessarily affect Dublin-listed hotels group Dalata, which typically outperforms the market.
Investec is forecasting “relatively modest RevPar growth” of 2.6 per cent for the group in Dublin this year.