Hotel room rates in Dublin rose at the fastest rate of any city in Europe last year, while Dublin hotels recorded the second highest occupancy rates in Europe behind London, according to a major report from consultants PwC.
PwC found that the capital had the highest spike in 2015 for revenue per available room (RevPAR) in Europe, surging by 23.3 per cent to €111, however it also highlighted Dublin's hotels were still "relatively good value", but warned that increased demand seeing prices expected to "creep up".
The report predicted that RevPAR in Dublin is likely to reach €107.60 in 2017, up from €99.50 this year, while the average daily rate for a room has risen to €120.9 in Dublin in 2016, and is forecast to hit €130.6 next year.
According to PwC, the top cities in Europe by RevPAR growth in 2016 are Rome (19.2%), followed by Dublin (9.1%) and Prague (6.6%), then Madrid (5.8%), Lisbon (5.7%), Porto (4.5%), Moscow (4%), Barcelona (3.3%) and Berlin (3.1%).
Meanwhile, in 2017, Dublin (8.2%) is forecasted to top the RevPAR growth league, followed by Lisbon (6.9%), Porto (5.8%), Barcelona (5.5%), Prague (4.9%), Milan (4.1%), Moscow (3.9%), Madrid (3.8%) and Frankfurt (2.9%).
PwC stated in the report that "growth is being driven by a combination of average daily rate (ADR) and occupancy growth"."For Rome, 2016 should see very high occupancy and ADR growth with the draw of the Holy Year propelling Rome’s RevPAR with an expected 25 million visitors and pilgrims, however this creates difficult comparatives for 2017.
In many top performing cities like London, Dublin, Edinburgh or Amsterdam which operate at high occupancy levels, it’s ADR driving the most growth," the report added.