THREE out of FOUR Irish hoteliers plan to increase investment in 2026 as annual conference begins

Hoteliers are gathering at the Irish Hotels Federation 88th Annual Conference in Killarney.
Research showed 92pc worried about the global economy.
76pc expressed concern over the Irish economy outlook.
Average national hotel room occupancy reached 76pc in 2025.
75pc plan to increase capital investment over the next twelve months.

The Irish Hotels Federation 88th Annual Conference confirmed that mounting business costs and global uncertainty remain primary concerns for hoteliers gathering at the Gleneagle Hotel in Killarney.

Recent industry research revealed 92pc of hoteliers worried about the global economy and political uncertainty in key markets while 76pc expressed concern over the Irish economy outlook as consumer finances face pressure. Despite challenges the sector maintained a cautiously optimistic view for the year ahead.

Average national hotel room occupancy reached 76pc in 2025 up 1pc on 2024 with Dublin City and County at 83pc and the Border region at 70pc. A slim majority of 51pc of hoteliers reported a positive outlook for trading conditions over the next 12 months while 75pc planned to increase capital investment focusing on guest bedroom refurbishment and restaurant bar upgrades. Environmental sustainability investment rose with 53pc planning increases in renewable energy and efficiency solutions.

IHF President Michael Magner highlighted forward bookings suggesting stable business levels in 2026 despite relentless cost increases. The Government’s decision to restore the 9pc VAT rate on hospitality food services from July will partially offset pressures for food-led businesses. The conference addressed key headwinds and priorities for the sector’s future growth.

Michael Magner shared “Despite significant headwinds, we are cautiously optimistic for the year ahead, with forward bookings suggesting hotel business levels will remain stable in 2026.

“This is despite significant headwinds, chief among them relentless increases in the cost of doing business, which is already exceptionally high by international standards. This requires a renewed, national focus on cost competitiveness – both within our own tourism industry and across the wider economy. Thankfully, the Government’s decision to restore the 9pc rate of VAT on hospitality food services from July will partially offset these increases for food-led businesses operating on some of the tightest margins of any sector.”

“A focus on value-enhancing investment is essential for the future growth of our sector and tourism industry. Hotels are examining all aspects of their operations to elevate their product, meet changing visitor preferences and achieve their sustainability goals. This ensures Irish tourism is positioned to deliver long-term growth as Ireland’s largest indigenous industry, supporting over 270,000 livelihoods.”