Irish hotels continue recovery in line with improving economy

The Irish hotel sector has reported a third straight year of growth with confidence of continued progress even though room rates remain “some way off” the heady levels of 2006.

Crowe Horwath’s Annual Irish Hotel Survey 2015 reports gains all round but highlights dominance in the capital. Dublin recorded occupancy levels of 77.2 per cent in 2014 compared to 76.3 per cent the previous year. Average room rates have also risen significantly from €90.73 to €97.25 or by 7.2 per cent.

And while this remains deeply in the shadow of the 2006 peak of €120.38, it is ahead of the midlands and east (€79.36), the southwest (€79.43) and west (€67.50).

Aiden Murphy, partner at Crowe Horwath, said while limited capacity played its roll in rising costs, the Dublin market would continue to rise in the coming years.

On a national level room occupancy grew from 65.9 per cent to 67.8 per cent. Average room rates rose to €82.29 from €77.49.

Key influences in the growth were an increase of 8.9 per cent in overseas visitors; a weakening euro against the dollar and sterling ;and increased domestic activity . Internet bookings accounted for 43.2 per cent of reservations.