Hotel room rates in Dublin hit record high
Latest data comes as EasyHotel announces it plans to open a new 130-bed hotel locally
Dublin hotels put in a record-breaking performance in the second quarter, achieving the highest average day rates ever, according to travel research company STR.
The figures come as EasyHotel announced it is to develop a purpose-built hotel in the capital after spending €9 million on a city centre site.
Reviewing the performance of European hotels, STR found that the average daily room rate (ADR) of Dublin’s hotels increased 9.5 per cent on the same period last year to €155.75, far outpacing the European average rate of €115.54.
According to the research company, the absolute values for occupancy, ADR, and revenue per available room (RevPar) were the highest for any second quarter on record.
The occupancy rate at Dublin hotels rose 0.2 per cent in the quarter to 89.6 per cent while RevPar was up 9.7 per cent to €139.51, compared with a European average of €87.20.
“Dublin’s already high occupancy levels have left little room for year-over-year growth. However, the market’s popularity as a destination and consistent demand for rooms continue to result in record-breaking performance,” STR analysts said.
STR’s sample, which comprises nearly 62,000 hotels and more than 8.2 million hotel rooms around the globe, shows the European hotel sector recorded growth across all key performance metrics with occupancy rates rising 1.1 per cent to 75.5 per cent.
Aside from Dublin, Moscow was the other star performer during the quarter, helped by a lack of supply growth and increased demand around the World Cup. Average room rates in the Russian capital jumped by 78.9 per cent, while RevPar was up 95.5 per cent.
The latest data comes in the same week that Irish hospitality group Tifco announced plans to bring the Hard Rock Hotel franchise to Dublin as part of a €30 million development opposite City Hall on Lord Edward Street.
It also comes as EasyHotel, the group established by EasyJet founder Stelios Haji-Ioannou, said it had acquired a freehold site in central Dublin and plans to develop a purpose-built, freehold hotel.
Located on the corner of Benburb Street and Wood Lane, the site already has planning permission in place for a 96-bedroom hotel. However, the group said it is to apply to amend the existing planning permission to build a 130-bedroom hotel.
The new hotel is expected to have a total investment cost of €18 million and will be funded using cash from the group’s balance sheet, together with local debt financing.