Increasing demand for Dublin hotel rooms drives rates up 17%
A report published this month by the Jones Lang Lasalle highlights that Dublin needs 3,000 hotel rooms today.
The supply of hotel rooms in the city has fallen significantly short of demand as Dublin continues to grow in popularity as year-round International business and tourism distribution of choice.
This lack of supply has driven room rates up markedly and occupancy so far in 2015 across all hotels is over 84%. The average room rate of £127 is over 17% increase on 2014.
There is currently less than near 300 rooms to be opened by the end of 2016 and many speculative developments planned for 2014 and beyond.
Dublin is experiencing a significant increase in tourists with airport passenger numbers up 15% in first half of the year and the city is also home to all the important technology and software businesses.
Stellar ESP Income Portfolio Service acquired a 150 bed hotel in Dublin in July 2015 which is performing extremely well. It is now undergoing a refurbishment programme to be complete by March next year. Potential investors can still obtain exposure to this asset and others owned by the Service – full details available here.