Friday 26 April 2019

Hotel room revenue falls in Dublin after years of growth

Dublin hotels experienced a fall in revenue per available room last month, following more than two years of positive growth. (stock photo)
Dublin hotels experienced a fall in revenue per available room last month, following more than two years of positive growth. (stock photo)
Ellie Donnelly

Ellie Donnelly

Dublin hotels experienced a fall in revenue per available room last month, following more than two years of positive growth.

Outside the capital the figure remained upbeat, new data shows.

This comes on the back of a controversial Vat hike in the last Budget, as well as increased competition.

Revenue per room fell 1.6pc in Dublin hotels last month, with occupancy down 1.0 percentage points.

Outside Dublin, revenue from hotel rooms increased 3.5pc in February, while occupancy edged up 1.3 percentage points.

Despite intensive lobbying and dire predictions that it would result in job cuts and unprofitability, in last October's Budget the Government restored the Vat rate for sectors including hospitality to 13.5pc from the 9pc rate it had introduced during the downturn.

Davy Stockbrokers' Joseph Quinn said Ireland's largest hotel group, Dalata, should still "outperform" the broader market.

Shares in Dalata fell 2pc in early trading yesterday.

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