Dublin Room Rates To Grow Strongly For Next Five Years: Crowe Horwath

By Publications Checkout
Dublin Room Rates To Grow Strongly For Next Five Years: Crowe Horwath

Professional services firm Crowe Horwath has predicted that Dublin hotel room prices will continue to rise for the next five years.

The firm also estimates that the capital requires 5,000 new rooms to cope with increasing demand, citing that there are only "shovel-ready" sites for 1,400, reports the Irish Independent.

"I think the expectation probably is that because of risk associated with the new developments - in terms of the difficulty in getting funding for development-type projects - these projects will all get delayed by an extra year or so," said Aiden Murphy, a partner at Crowe Horwath.
"It might take an extra one or two years to deliver those 5,000 rooms.

"There's probably a four or five-year window where the existing hotels can enjoy an environment where occupancy levels will be high and rates will be strong," he added.

Murphy admits that the market for buying hotel in Dublin has been altered in the past couple of year as international players invest in the capital.

"Back in 2014 the Temple Bar Hotel, with 132 rooms, would have been sold for €28m and probably just over 15 or 16 months later that property was resold at €55m. The value per room in the marketplace would have almost doubled.

"That probably leaves a lot of hoteliers wondering whether the market is topping out and whether it's a good time to sell rather than buy...I think what we're seeing is confidence by investors in the core Dublin city centre marketplace."