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Dublin's hotels are facing a supply shortage, causing income in the sector to boom.
The average daily rate for hotel rooms in the city rose by 9.5% to €155.75 year on year, according to the latest stats from STR, and revenue per available room was up 9.7% to €139.51.
Hotel room occupancy in Dublin was 89.6% in the second quarter, up 0.2% over the same quarter last year, STR said.
STR said the absolute values for occupancy, ADR and RevPAR were the highest for any Q2 in its Dublin database, while the average daily rate was the highest for any quarter.
The company’s analysts noted that Dublin’s already high occupancy levels have left little room for year-on-year growth.
“However, the market’s popularity as a destination and consistent demand for rooms continue to result in record-breaking performance,” STR said.
In the whole of Europe, occupancy rates were up 1.1% to 75.5% in Q2. ADR increased by 3.8% to €115.54 and RevPAR rose by 4.9% to €87.20.
Dublin is unlikely to get a significant injection of new hotel room stock any time soon, but there is plenty of development activity in the pipeline. For example, Tetrarch Capital has recently been given permission for a 393-bed hotel and 202-bed aparthotel on Townsend Street in Dublin 2. A new 120-bed Hard Rock Hotel is to open on Lord Edward Street in Temple Bar in 2020.
Last week, budget operator EasyHotel revealed it has bought a site near Smithfield in Dublin 7 with planning permission for a 96-room hotel. And, according to the Sunday Times, property developer Noel Smyth has lodged plans for a 257-bed hotel next to Arnott’s department store on Henry Street in Dublin 1.
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