Dublin hotels increased their returns more than those in any other major European city last year, a new report indicates.
The report, prepared by financial services firm PwC, also forecast that the revenue per available room for Dublin hotels will increase by a further 5.2 per cent this year, and 3.8 per cent next year, having jumped by a massive 11 per cent in 2013.
The occupancy rate for Dublin hotels has passed pre-recession levels, with rates of 79 per cent last year compared with 67 per cent in 2008. The projected occupancy rate for this year is 80 per cent.
The projected increase for revenue per room for this year is highest for Dublin, followed by London and Paris, both at 3.8 per cent. These are followed by Edinburgh, Berlin, Frankfurt, Vienna and Moscow.
London is projected to top the growth league in 2015, followed by Dublin and then Lisbon, Prague and Moscow.
The average daily room rate for Dublin was €89 last year, putting it in 14th place among the cities surveyed. The occupancy level puts it in fourth position.
The average daily room rate for Dublin is forecast to grow to €94 this year, and €96 next year.
Revenue per room is expected to be close to €74 this year, and €77 next year.
Michael Ring, Minister of State for Transport, Tourism and Sport, said that as Ireland emerges from a very tough period for tourism, value for money was still critical.
“Hotels need to ensure that customers get a good bang for their buck, whether that’s at premium or at economy level. Hotels can do this by adding value to their products.”
Best value
Jennifer Gillen of PwC Ireland said it was interesting to note that occupancy had now passed pre-recession levels. It was clear from a consumer point of view that Dublin continues to offer some of the best value hotel rooms in Europe.
According to the report, the improving economic and travel backdrop helped rejuvenate trading in almost all the 18 cities analysed. However the pace of growth varied from city to city, and the challenge for hotels will be to capitalise on this improving climate while responding to the trends impacting on their business.
The report anticipates growth in 17 of the 18 cities in both 2014 and 2015. Madrid is the exception and is the only city seeing no growth in either of the years.
