Dublin risks hotel room price inflation and diminished competitiveness as a destination unless it sees timely investment in new hotel bedroom capacity, Failte Ireland has claimed.
Fáilte Ireland sounded the warning in a submission to Dublin City Council supporting plans for a new 143 bedroom apart-hotel for Donnybrook, Dublin 4.
Last month, Keith Craddock’s Red Rock Donnybrook lodged plans for the scheme and European-wide tech-powered hospitality provider, Bob W. is to operate the seven storey 143 bedroom apart-hotel on lands at the Circle K petrol station at the junction of Donnybrook Road and Brookvale Road, Donnybrook.
In the Failte Ireland submission signed off by its Head of Accommodation Development, Anne Walsh and its Manager of Environment and Planning, Shane Dineen state that the new aparthotel “would be a valuable addition to the tourist accommodation stock and go some way in addressing the tourism accommodation shortages being faced by the city”.
RM Block
They state that “therefore, from a tourism perspective, Fáilte Ireland supports the proposed development in line with all proper planning/environmental and tourism regular requirements being met”.
They state that at peak times for hotel rooms in Dublin demand far exceeds supply “and inevitably in a scenario such as this, room rates increase, and visitors find it difficult to secure accommodation (at any price). This risks Dublin being perceived internationally as a destination that is not competitive”.
They state that “there is a well-documented shortage of tourist accommodation in Dublin, with demand consistently outpacing supply. As of Q1 2025, Dublin accounts for 86,250 tourist bedspaces, almost a quarter of the national total, yet sustained high occupancy rates, particularly during peak months, highlight the ongoing capacity constraints”.
They state that “As of Q1 2025, there are 8,680 hotel bedspaces under construction in Dublin, the majority of new supply is concentrated in city-centre projects. The forthcoming ShortTerm Letting Register may lead to a reduction in available short-term rental stock, particularly in areas where planning restrictions apply”.
The chair of the Eglinton Residents Association, Robin Mandal has told the council that “we are concerned at the overall density and height of the proposed development. We consider it to be more than the site could take and are concerned about the precedent that it might set for the remaining sites in the urban block”.
Mr Mandal has asked that the council to omit one floor and thereby reduce the number of rooms from 143 to 118.
