Delivery of new hotels in Dublin 'remains slow'
There may be a strong pipeline of new hotels for Dublin on paper, but only one new hotel will open this year with three more scheduled to open next year.
That is according to property expert Daniel O'Connor, senior vice president of Jones Lang Lasalle.
Mr O'Connor said the delivery of hotels "remains slow with many sites yet to obtain financing or an operating partner".
He made his comments during the course of a submission to An Bord Pleanála where he is making the case for the need for the hotel component in Johnny Ronan's 22-storey Aqua Vetro tower. Dublin City Council last month refused planning permission for the proposal which contains the hotel plan. In the past week, the City Council has granted planning permission to two new hotel projects.
One is at the Radisson Blu at Golden Lane where a major extension has received the green light, while the other is for a 124-bedroom hotel planned on Ship Street near Dublin Castle.
In his submission, Mr O'Connor said only three hotels have opened in Dublin this decade and they include The Marker and The Gibson.
Mr O'Connor said that in close proximity to the planned Ronan hotel, the Westin, the Temple Bar Inn, the Temple Bar Hotel, The Morgan and the Trinity City Hotel operate and are operating at occupancy levels of 80pc.
Mr O'Connor said that in terms of competing hotel developments in the pipeline, there is one 159-bedroom hotel planned for Mark Street and two for Townsend Street that will deliver a combined 590 rooms.
"Given the shortage of rooms in Dublin City and the immediate locality, we consider there to be more than enough room to facilitate, and more than enough bed night demand, to absorb a number of new hotels within the immediate area," he said.
Highlighting the shortfall in hotel rooms in the Dublin docklands area, Mr O'Connor said there are 1,157 hotel guest rooms in the nearby docklands area against an existing accommodation stock of 4 million sq ft.
Mr O'Connor said: "This equates to one guest room per 3,457 sq ft of built office stock which is well below the Dublin business park average of one guest room per 2,000 sq ft of office stock."
Advancing the case for the Ronan hotel plan, Mr O'Connor said that "given that the hotel development would integrate with a large office scheme and interconnect with a major transport node, we consider it important that the developer delivers a minimum guest room count of around 110-125 keys on site, in order to ensure development viability."
Mr O'Connor states: "This minimum room count is also important because the majority of major hotel operators, hotel investors and hotel financiers require a minimum hotel size in order to maximise operational efficiencies and profitability."