Cost of a hotel room outside Dublin rose 8% in July

The average cost of a hotel room outside Dublin rose by more than 8 per cent in July compared with the same month last year, new figures show.

The statistics, from hotel market data company STR, show that occupancy of hotel rooms outside Dublin was down 1.8 per cent to 85.2 per cent in July, while the average daily room rate was up 8.1 per cent to €130.87.

Revenue per available room (RevPAR), which is calculated by dividing room revenue by the number of rooms available, was up 6.2 per cent to €111.45.

Occupancy in the capital was also down, dropping 0.6 per cent to 90.1 per cent. The average daily room rate was up 5.3 per cent to €158.45, while RevPAR was up 4.7 per cent to €142.76.

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In the Republic as a whole, occupancy was down 1 per cent to 88.1 per cent, while the average daily room rate was up 6.7 per cent to €147.54, and RevPAR was up 5.6 per cent to €129.96.

The figures are probably attributable to an increase in the number of tourists visiting the Republic.

The volume of visitors from mainland Europe increased 5 per cent to 3.25 million last year while the number of North American tourists rose 16 per cent to 1.7 million. There has been a decline in UK visitors.

Solid growth

In a note, an analyst with Davy said Dublin’s RevPAR growth in July should be viewed as “solid”.

In relation to Dalata, the State’s biggest hotelier, the analyst said average daily room rates would “remain central to growth” as occupancy levels are “very full”.

Davy is forecasting full-year 2018 RevPAR growth of 5.5 per cent for Dalata in Dublin, 5 per cent outside Dublin and 3.5 per cent in the UK.

The figures follow the announcement by Irish hospitality group Tifco last month of plans to bring the Hard Rock Hotel franchise to Dublin as part of a €30 million development opposite City Hall on Lord Edward Street.

Elsewhere, EasyHotel, the group established by EasyJet founder Stelios Haji-Ioannou, has acquired a freehold site in central Dublin and is planning to develop a purpose-built, freehold hotel.

The site, on the corner of Benburb Street and Wood Lane, already has planning permission in place for a 96-bedroom hotel. However, the group is to apply to amend the existing planning permission to build a 130-bedroom hotel.