Tax take: Restoration of Vat a 'non-event' for Dalata, says CEO
THE supply of rooms in Dublin's hotel market is close to equilibrium as a surge in construction reaches a peak, the chief executive of Ireland's biggest hotel group has insisted.
Dalata CEO Pat McCann also said that the group has done significant research on the German market but that expansion outside Ireland and the UK will be the focus for the next year or two.
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The CEO also said that the increase in the hospitality sector Vat rate to 13.5pc in January had been a "non-event" for Dalata.
A report last year for Bord Fáilte reckoned Dublin had a shortage of about 3,400 hotel bedrooms, and that by 2020 the shortage would still amount to about 1,100.
"The market always does sort itself out," said Mr McCann, who was speaking after Dalata's annual general meeting in Dublin.
"What actually happens is that in the normal recycling, you have more draw-downs and properties coming out of the system than new ones coming in," he said. "That happens in every city in the world. Dublin will be no different."
There were about 20,500 hotel rooms in Dublin in 2018, and Mr McCann estimated that about 21,000 or 22,000 rooms are required. "That's where the market should be and that's where it is going to be."
About 2,500 hotel rooms are expected to open in Dublin between 2019 and 2020.
Dalata has 4,460 hotel rooms in Dublin and 1,797 outside the capital in Ireland.
Mr McCann, who is 67, said he had no plans to leave his CEO role within the next year or two. "It's not an easy one to call," he said. "But you won't see anything happening in the next year or so."
He added: "Essentially, everybody at senior level has to be replaceable in the morning. That's the reality."