According to new data from property advisory firm CBRE Ireland, the average cost of renting a hotel room reached a record high in May.
The average daily rate (ADR) for the month was €209, a 3.5% increase over the previous monthly record. That was achieved in September of last year. So far this year, the ADR across all hotels in the capital has been approximately €170.
According to CBRE, occupancy rates in all Irish cities, including Dublin, remain high.
Between January and the end of May, occupancy in Dublin averaged 78%, which was consistent with levels attained prior to the pandemic in 2019. As reported by CBRE, transactional activity in the hotel industry increased during the second quarter of the year. Six distinct Irish hotel sales totaling €91 million were finalised between April and the end of June.
€135 million in capital was deployed on Irish hotels in the first six months of the year.
Despite rising construction costs and financial concerns, CBRE said development activity remained relatively healthy.
“Private investors and family offices are particularly active in the current market,” said Colin Richardson, Director and Head of Research at CBRE Ireland.
“Due to the strong trading performance of both Dublin and regional hotels, the hotel sector remains appealing to institutional investors and lenders.”
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