Dublin Expected To Get An Additional 1,300 Hotel Rooms In 2018
According to property group Jones Lang LaSalle, Dublin's hotel room stock is expected to increase by 1,300 (6%) in 2018. However, JLL also notes that trading performance, as measured in revenue per available room, is expected to grow by 5% this year, down from 7.8% in 2017.
As reported by The Irish Times, even though growth is expected to slow down, at 84%, Dublin city centre is said to have "one of the highest occupancies in Europe" at present.
Senior vice-president of hotels at JLL Dan O'Connor commented, "Whilst these figures are fantastic for the industry, the biggest challenge facing the Irish hotel market is Brexit. Ireland is experiencing a decline in UK visitation, and UK demand may weaken further as the British consumer faces into higher inflation and economic headwinds in 2018."
JLL suggested that both Galway city and Dublin airport are ripe for growth when it comes to hotel investment opportunities, with the former location being singled out as a result of its impending status as the 2020 European Capital of Culture and the latter being highlighted due to an undersupply of hotel rooms in the area despite "unprecedented levels of passenger growth" at the airport.
Furthermore, JLL believes that the capital offers favourable opportunities for hoteliers wishing to sell, "with hotel values now firmly in excess of €400,000 per key for prime Dublin city centre."