Pipeline of 3,000 hotel rooms will increase Dublin stock 15pc
Construction projects underway or in planning will add 3,000 hotel bedrooms in Dublin by 2020, a 15pc increase in the total stock.
Developments currently in the pipeline will add new units in the aparthotel and budget sectors, which are currently under-represented in Dublin, according to research from property group Savills' Hotels and Leisure division.
Savills analysed hotels currently in the planning process, that have received planning approval or are currently under construction, and found that more than 3,000 bedrooms will be built by the end of 2019.
Dublin currently has a stock of approximately 19,000 bedrooms. Rising hotel prices at peak times, including those associated with major business conferences, have provoked fears that a lack of supply will ultimately hurt tourism by eroding competitiveness.
"Most Dublin hotels trade in both the leisure and corporate markets and hotel development is also targeted at both markets," Tom Barrett, Director Savills Hotels & Leisure said.
Hotal capacity is also a concern for the European Council. It said cities vying to win the European Medicines Agency (EMA) when it leaves London after Brexit must meet conditions including having a daily peak hotel capacity of 350 rooms to cater for the agency's 36,000 annual visitors.
According to Savills, new hotel development in Dublin is currently focused in a handful of key areas, led by Dublin 1 and 2, followed by Dublin 8 and the airport.
Next year, 55pc of new bedrooms will come from new hotels, with the balance from extensions to existing properties. By 2019, Savills expects almost 90pc of new supply to come from new hotels.