Hotel Construction Begins To Pick Up As RevPAR Rises
New figures from commercial property company Cushman & Wakefield have revealed that construction of hotels in Dublin is beginning to pick up, with approximately 800 new hotel rooms coming on stream in the capital's market during the first three quarters of 2018. Additionally, 2,800 more hotel rooms were in the pipeline as of September 30, representing a 37% rise on the figure for the same period last year, as reported by The Irish Times.
RevPAR, Room Rates And Occupancy
According to statistics from travel research firm STR, an undersupply of hotel rooms combined with buoyant tourist numbers led to a 7.1% rise in revenue per available room (RevPAR) in Dublin during the year to the end of October 2018. The average daily room rate in Dublin rose 3% during the 12 months, with the capital's occupancy rate increasing 0.6%.
Meanwhile, RevPAR rose 10.3% in regional Ireland during the same period with the average daily room rate outside of Dublin rising 13.3% and occupancy outside of the capital increasing 2.1%. The average price of a hotel room in regional Ireland was €113.50 in October of this year compared to €146.11 in Dublin.
Cushman & Wakefield also revealed that transaction activity in the hotel sector has been limited this year, with the value of hotel sales during the first three quarters of 2018 dropping 10% on the same period last year to €79.3 million. Cushman & Wakefield anticipates that the total value of hotel sales in 2018 will exceed €120 million, which is considerably less than the five-year average of more than €400 million per annum.
© 2018 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.