The Crowe Ireland Hotel Industry report shows a strong year of sales and profit growth for the Irish hotel sector.
- Profit levels for Irish hotels are now higher than levels achieved at the peak of the market in 2006
- Occupancy levels increased by 3.3 percentage points nationally to 71.1% as all regions benefited from stronger levels of demand
- Average room rates have also increased by 12% to €92.15
- All key metrics for the sector have recorded improvements
Dublin hotels lead the recovery in the sector with occupancy levels at 80.7% up from 77.2% in the previous year. The average rate charged for a room in Dublin is now €111.83, up from €97.25 on the previous year, representing a 13% annual increase.
The 5-star market and larger hotels also benefitted from an increase in demand which allowed these hotels to yield a higher average room rate and stronger profit levels.
Aiden Murphy, a partner with Crowe, has overseen the production of the Annual Hotel Industry Survey for the last 18 years. He notes that the profit levels within the hotel sector is now at a sufficient level to support the development of new hotel builds in Dublin and extensions to hotels outside Dublin. The Dublin hotel sector is dealing with capacity issues and new room supply is required to deal with increasing demand levels.
The Crowe Ireland Industry Survey is carried out on an annual basis and all information for this report is drawn from the financial year ending 2015. The report covers key issues in Ireland’s hospitality sector including hotel performance, room occupancy, average daily rate and profit before tax. The annual Hotel Industry Survey serves as a benchmarking tool for the sector. Crowe’s Hotel, Tourism & Leisure (HTL) division are specialist hospitality consultants that provide impartial expert advice on hotel, tourism and leisure projects at every stage of the lifecycle. The team have extensive, in-depth knowledge and understanding of the industry.
For a copy of the Ireland Hotel Industry Survey 2016 please email [email protected]
