Deloitte survey shows 1,650 new hotel rooms opened in Ireland in 2023

The Deloitte Crane Survey, analysing the development landscape in Ireland, reported a decrease in hotel completions in 2022 compared to the previous year, but an increase from pre-pandemic figures in 2019.

In 2022, 1,650 new hotel rooms opened in Ireland, while another 2,850 rooms are currently under construction.

Deloitte said confidence in the hotel sector in Ireland has returned following Covid, leading to an improvement in hotel development activity.

Kate English of Deloitte said: As the market improved, a number of new hospitality assets completed construction with more on the way. An estimated 1,650 new rooms were opened in 2023, and although down from 2022, this represented an improvement on 2019 levels. The majority of these completions were in Dublin, with ReZz, Premier Inn and Travelodge Plus all adding beds to their Irish portfolios.  At the start of 2024 just under 2,850 rooms were under construction across Dublin, Cork and Galway, with the majority due for delivery in 2024. Over 550 of these rooms were completed in the first quarter, a further 1,080 rooms are due to complete before the end of the year, with the remainder falling into 2025 and 2026. The completion of new stock over the coming years will bring with it new brands to the Irish hotel market. These include the Hoxton, Citizen M and Ruby Hotels. The Deloitte report includes STR data showing the Average Daily Rate (ADR) commanded by hotels in Dublin City was €204, the highest rate since records began and 22% higher than the pre-Covid average recorded in 2019. Meanwhile, the Revenue Per Available Room (RevPAR) was €164 in 2023 in Dublin City, also a record-breaking figure, and 17% higher than the 2019 average. While rates vary considerably in the surrounding Dublin area and elsewhere in Ireland, across the board these record-breaking trends held true.

John Doddy, Partner Deloitte said: “There are a number of really encouraging indicators that show the recovery of the hotel market in Ireland following Covid-19, from construction activity to occupancy rates. However, it is uncertain whether this stellar market performance will continue, as occupancy, Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR) each recorded a decline in the year to March 2024. Initial market soundings suggest a weakening in demand, with hotel groups citing the increased VAT rate and increased competition as key challenges facing the industry in 2024. However, several key events, such as Taylor Swift and Bruce Springsteen concerts, will likely bolster performances over the summer.”

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