A new report has found that Dublin’s hotel occupancy reached 84.1% over the past year, well above the European average of 71.7% and ahead of major gateway cities including Barcelona, Amsterdam, Milan, Rome and Vienna.
Dublin hotels were effectively full for four in every ten nights over the past year, according to the new research from Savills.
The research found Dublin recorded 146 nights where hotel occupancy exceeded 90% – known in the hotel industry as compression nights because demand leaves very little bedroom capacity available.
Representing 40% of the year, Dublin recorded significantly more of these high-demand nights than every other major European city, which Savills said underlined the strength of both business and leisure travel to the capital.
Savills said that while Dublin continues to lead the way, its report concludes that Ireland’s hotel success extends far beyond the capital.
Strong international tourism, resilient corporate demand, a growing calendar of major sporting fixtures and concerts and increasing interest in regional leisure destinations have combined to make Ireland one of Europe’s standout hospitality markets, it added.
Today’s report also highlights the continued importance of the US market, with American visitors accounting for about 20% of overseas visitors to Ireland while generating 41% of international tourism expenditure.
This high-spending visitor base continues to support premium room rates, luxury accommodation and year-round demand, it added.
According to Savills, the Irish hotel sector has also demonstrated a “remarkable” ability to absorb new hotel supply while maintaining exceptionally strong occupancy levels.
It noted that despite a healthy development pipeline, Dublin continues to record some of Europe’s highest occupancy rates, reflecting sustained demand.
Tom Barrett, Director of Hotels & Leisure at Savills Ireland, said that what makes Ireland’s performance particularly impressive is that it is not driven by a single factor.
Strong business travel, international tourism, major concerts and sporting events and the Wild Atlantic Way all play an important role, but equally important is the depth and diversity of demand across the market,” Mr Barrett said.
“That gives Ireland a level of resilience that relatively few European hotel markets can match,” he added.
Looking ahead, he said the next chapter of Ireland’s hotel story is likely to be regional.
“International visitors increasingly want authentic experiences centred around heritage, food, golf, wellness and the natural environment. Demand for those experiences already exists, but in many parts of the country the supply of high-quality luxury accommodation hasn’t kept pace,” he explained.
“That presents a compelling opportunity for investment in distinctive regional hotels that can capitalise on Ireland’s growing international appeal. The strongest opportunities are no longer confined to Dublin; they’re increasingly found in locations that can offer something unique,” he added.