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Lockdown may cause drop of over 4,000 beds in Dublin hotel pipeline


Delivery: A rendering of the planned Wren Urban Nest hotel in Dublin

Delivery: A rendering of the planned Wren Urban Nest hotel in Dublin

Delivery: A rendering of the planned Wren Urban Nest hotel in Dublin

The Covid-19 outbreak is expected to reduce the pipeline for new hotel bedrooms in Dublin by 32pc, with 4,057 fewer beds to be delivered by 2022 than previously expected.

This is the view of Tom Barrett of estate agents Savills Ireland who still expects about 1,142 new hotel bedrooms could be delivered this year in a number of the capital's hotels.

They include: Wren Urban Nest in Andrews Lane, between Grafton St and Temple Bar; Hampton by Hilton at River House, next to the Four Courts, in Dublin 7; a Holiday Inn in Dublin Airport with 420 beds; Keaven's Port, Wetherspoons' first hotel on Camden St as well as the Zanzibar Locke aparthotel on Ormonde Quay.

"Those most likely to open are ones that are already significantly completed," he said.

Over 90pc of the projects that were expected to open this year have the top floor in place, or have full facades or glazing in place. However, if construction sites are closed for longer than expected, some of these hotels could slip into 2021. He expects this year's number of beds to fall by 273.

Before the current restrictions were imposed, Savills visited Dublin hotel construction sites to observe physical progress.

"Based on these visits and our own analysis we expect hoteliers, developers and investors will complete most projects that have commenced construction, although the delivery and opening dates will slip," said Mr Barrett.

However, for sites that have not commenced, or are in the very early phase of development, there is a greater risk of delay and re-purposing of the projects.

He had expected a further 2,982 bedrooms in 2021 hotel openings but now estimates output could fall to 2,205 next year.

"Only 25pc of those 2021 hotels which are expected to complete have reached the top floor of construction, but very significant work has been completed on all of these hotels," he said.

The hotels which he forecast might open in 2022 are at early stages of construction and Savills has halved its forecast to 710 for that year.

"With a reduced development forecast for Dublin hotels, we believe new hotel development in Cork, Galway, Limerick and regional Ireland will be more difficult to deliver in the coming years," he said.

Mr Barrett had previously estimated that between 2014 and the end of 2020 as many as 8,000 extra hotel bedrooms would have been have been added to capacity - boosting total stock of Irish hotel bedrooms to 66,000.

Next year was earmarked to see Staycity open almost 1,000 aparthotel bedrooms and for Travelodge to add almost 400 rooms.

Irish Independent