A leading international consultancy has given Ireland’s hotel sector a clean bill of health — at least within the main city centre locations — but has warned current growth levels are unlikely to be maintained.
Christie + Co, the London-based international hospitality sector consultancy, has published a Dublin city centre hotel review.
It said double-digit percentage “rev-par” (revenue per available room) growth is likely to be seen in 2012 for a second consecutive year and that prospects for the capital remain positive.
That said, rev-par growth of 11.6% in 2011 and 10.7% for the first eight months of 2012 are well below peak levels seen in 2007 and are being compared with severe declines in 2008 and 2009.
The study said Dublin has suffered in recent years due to the global recession, the weak local economy, and “a severe over-supply” of hotel stock in parts of the city’s outskirts.
It does not deem the city centre area to be suffering from over-supply.
While a number of hotels have closed in the city, room stock is up by nearly 40% on 2005 levels.
No new openings are expected — save for the partially completed ‘Marker’ hotel due to open in Dublin’s docklands next spring. But Christie’s agrees with Irish Tourism Industry Confederation suggestions that another 5,000 rooms should be needed in the capital by 2020.
“Prospects for Dublin remain positive, with indications that the city’s hotel market will continue to strengthen as a result of ongoing growth, investment and enhanced visitor numbers,” said Maureen Doyle.
However, she said annual revenue growth levels are likely to reach more “normalised” levels, linked to inflation.
Christie’s is planning to publish more Irish-focused hotel surveys, including a focus on Cork in the coming months.
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