Dublin hotels show signs of recovery as occupancy levels rise
Published 10/12/2011 | 05:00
DUBLIN'S hotel sector is beginning to recover, with rates and occupancy levels higher in the past nine months, according to a new survey.
The average daily rate charged by Dublin hotels was €82.41 in the period, up 6.3pc on the €77.51 charged in the comparable nine months in 2010. Occupancy rates were 8pc higher in the first nine months of 2011 at 73pc.
The results of the survey, which was undertaken by STR Global -- Deloitte's hotel consultancy arm-- also show that revenue per available room in Dublin jumped nearly 15pc in the first nine months, to €60.16.
Kevin Sheehan, the partner in charge of tourism, hospitality and leisure services at Deloitte in Ireland, said the survey demonstrated that summer 2011 was stronger than the previous year's.
"The picture that is emerging for Dublin hotels in 2011 is one of steady recovery, albeit the margins being achieved are still relatively small," he said.
Hotels had hit on the right pricing levels but the challenge now for the businesses was to maintain them.
"The challenge now, as consumers remain price sensitive, will be to ensure their proposition remains competitive and attractive," said Mr Sheehan.
Hotels in Dublin have fared better than their counterparts in other parts of the country. Hoteliers outside the capital, and particularly those in more rural regions, have been critical of the relatively low levels of pricing being offered by properties now controlled by banks or NAMA, for instance.