Optimistic Outlook For Dublin's Hotel Sector
Published on Oct 1 2012 10:28 AM in Hotel
Christie & Co, a leading international hospitality sector consultancy firm, has published its analysis of Dublin city centre's hotel situation. The London-based consultancy firm's review predicts a double-digit percentage “rev-par” (revenue per available room) growth for 2012 and shows optimistic prospects for Dublin's hospitality sector. Despite this good news, Christie & Co's report also revealed that the rev-par growth during 2012's first eight months and 2012 of 10.7 per cent and 11.6 per cent respectively does not live up to expectations set by the peak levels seen in 2007. According to the analysis, Ireland's capital has suffered in recent years – especially during 2008 and 2009 when the hotel sector experienced severe declines – due to several reasons. First of all, the recession played its role, of course, but the weak local economy and the “severe over-supply” of hotel stock in parts of the city's outskirts are also contributed to the sector's paltry growth. As a result of this downwards development, a number of hotels have closed in the city. However, a room stock growth of 40 per cent compared to 2005 levels and the supposition that by 2020, another 5,000 rooms should be needed in the city, induce British Christie & Co to conclude upon a positive outlook for Dublin's hospitality sector.