THE DUBLIN hotel market has experienced a 10.7 per cent increase in revenue per room in the first eight months of this year compared to the same period in 2011, according to a new study.

The report by STR Global and hotel property specialist Christie + Co said the growth was driven by “enhanced rate achieveability” on the back of stronger demand. However, the city’s revenue per room was still far off the peak levels witnessed in 2007.

The strong trading throughout 2011 led to a €6 gain per room as a result of both a 4 per cent increase in occupancy to 71.2 per cent and a 5.4 per cent increase in the average room rate to €81.61. For the first eight months of 2012 as occupancy had strengthened, hoteliers achieved a higher rate from both leisure and corporate segments to reach €87.50.

Maureen Doyle of Christie + Co, said the growth could be attributed to a general boost in demand and an increase in the number of visitors to Dublin, enhanced consumer confidence and a slight weakness of the euro against sterling and the dollar. The 9 per cent VAT rate on certain goods and services had also aided the tourism and hospitality industries to regain growth. Initiatives such as “The Gathering” were also likely to have a positive impact on the hotel market.

Data from Fáilte Ireland shows that the city’s registered room stock is over 18,500, a 37 per cent increase on 2005. Most of the new additions are in the four and five- star segments. Since a peak in 2010 supply is down slightly due to the closure of a number of properties, including the Montrose, The Royal Dublin, Ormond Hotel and Chief O’Neill’s which was converted to a hostel. Christie + Co said the pipeline for new hotel development was weak with the exception of a recently sold part-completed docklands hotel due to open next spring as “The Marker” with 187 bedrooms.