Ireland’s hotel sector delivered a strong performance in 2025, outpacing much of Europe in demand growth and maintaining high occupancy levels, according to data presented by Sarah Duignan, Director of Client Relationships at STR, at the Irish Hotels Federation Annual Conference in Killarney.
Duignan highlighted that global hotel demand rose 8pc compared with pre-COVID 2019 levels, despite significant new supply worldwide. Europe sat just above the global average, while the Americas lagged. Ireland aligned closely with the global average and exceeded the European benchmark, with year-over-year demand growth just under 2pc.
Occupancy across Europe reached 71pc in 2025, up 1pc on 2024, with average daily rates at €159. Northern Europe posted the highest occupancy at 75pc, though with modest growth. Ireland and England both achieved 78pc occupancy, the highest in Europe. Ireland recorded a 2pc increase in average rates, placing it competitively in the middle of European markets.
Entry level hotels in Dublin achieved a RePAR over €100 in 2025 for the first time. Average daily rates in Ireland were in the mid-range in Europe, behind Iceland, Cyprus, Switzerland, Montenegro, Italy, Malta, France, and Croatia, but ahead of Portugal, Spain, Netherlands, Luxembourg, England (slightly after currrency conversion), Austria, Denmark, Albania and Serbia.
Occupancy in Dublin hotels reached more than 95pc on 62 nights in 2025, compared with 37 nights in 2024, 40 nights in 2023 and 39 nights in 2019and with occupancy 95%+
Dublin RevPAR grew €2.33 in 2025 driven by a 2ppt occupancy increase. In December 2025 Dublin demand was almost 30% ahead of December 2019.
Dublin led regional performance with 84pc occupancy and an average rate of €174. Galway commanded a premium of about €12 higher, while Kerry averaged €169. Dublin Airport hotels approached 90pc occupancy. Outside Dublin, growth came primarily from rate increases, with some occupancy gains in regions like the northwest and Munster. Dublin’s growth stemmed almost entirely from occupancy, down marginally by 0.1pc year-over-year.
Demand surged dramatically in key periods. December 2025 ranked among the strongest months for American visitors, with 79,000 arrivals. Americans continued to drive elongation of the shoulder season into November and December.
Other takeaways from the presentation include:
- Ireland enjoyed joint highest occupancy in Europe in 2025
- Ireland ADR was in the “middle of the pack” in 2025
- Dublin supply has grown 10.2% since January 2023 and 25.2% since pre- Covid
- Dublin hotels had an ADR €320-€360 for the American football weekend
- Galway race week grew occupancy by 3ppt & over €4 in 2025 v 2024
- Cork Jazz festival 2025 occupancy was 3ppt down on 2024 & ADR back 78c
- ADR was the key growth driver across the country outside Dublin
- Dublin was occupancy driven
- Ireland is third in Europe for supply growth at 4pc after Georgia and Poland.
- ADR for many regional markets traded ahead of Dublin
- American arrivals to Ireland continue to grow
- Hotel class performance has followed two trajectories with luxury booming
- Higher occupancy in the regions report and slower occupancy growth
- US outbound international still up, whilst inbound took a hit
- With demand mostly positive and supply muted, occupancy can & did grow
- Ireland demand is well ahead of the European average
- Slow supply growth has been a constant since the post-covid boom
Sarah Duignan shared: Ireland is bucking the trend – more demand on par with the global average, significantly more than the European average, and halfway between Europe and the Middle East and Africa.
Americans have never been more important for Ireland. Inbound to the US has slowed down, but outbound international travel from the US continues to grow, including to Canada and Mexico. Demand drivers include aircraft access at Dublin and Shannon, with swathes of Americans. They stay longer, spend more, do crazy itineraries.
The reality is that if things are not going well further afield, outside Ireland, outside Europe, and certainly in our source markets, things will not go well for us.
