Revenue from hotel rooms falls in Dublin, remains positive across the regions
Dublin hotels experienced a fall in revenue per available room last month, following over two years of positive growth.
Outside the capital the figure remained positive, new figures show.
This comes on the back of a controversial Vat hike in the last Budget as well as increased competition.
Dublin revenue per room fell 1.6pc in February, with occupancy down 1.0 percentage points. In Regional Ireland, revenue increased 3.5pc last month, while occupancy edged up 1.3 percentage points.
Despite intensive lobbying and dire predictions that it would result in job cuts and unprofitability, the Government decided in last October's Budget to return a special 9pc Vat rate it had introduced during the downturn for certain sectors, to 13.5pc.
Despite the headwinds in 2019, Joseph Quinn, analyst at Davy Stockbrokers, said he believes Ireland’s largest hotel group, Dalata, should "outperform" the broader market.
"Additionally, Dalata’s FY18 results outlook comment that Quarter One “trading across our three regions is in line with our expectations” further supports this view," Mr Quinn added.
In London both revenue and occupancy was up marginally in February. While in the rest of the UK there was a fall in both revenue per available room (down 2.7pc) and occupancy (down 0.3 percentage points).