{"id":466121,"date":"2026-05-25T11:51:10","date_gmt":"2026-05-25T11:51:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/466121\/"},"modified":"2026-05-25T11:51:10","modified_gmt":"2026-05-25T11:51:10","slug":"inside-the-shelbourne-hotel-if-this-hotel-is-a-barometer-the-irish-economy-is-good-the-irish-times","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/466121\/","title":{"rendered":"Inside the Shelbourne Hotel: If this hotel is a barometer, the Irish economy \u2018is good\u2019 \u2013 The Irish Times"},"content":{"rendered":"

\u201cDo I look older?\u201d jokes JP Kavanagh, general manager of the five-star Shelbourne Hotel<\/a>, which overlooks St Stephen\u2019s Green in the heart of Dublin city centre. <\/p>\n

He\u2019s referring to the years-long planning of a \u20ac50-million renovation<\/a> of the 202-year-old hotel, a process that began under its previous owners Kennedy Wilson<\/a> and was signed off by Archer Capital, which paid a reported \u20ac260 million two years ago to acquire the property.<\/p>\n

In phase one, some 80 bedrooms are being completely gutted, which means about 30 per cent of his inventory has been taken out of commission. <\/p>\n

\u201cThat\u2019s happening as we speak and will ramp up over the next couple of weeks. For me, it will be the easy part in some respects. The planning and everything that goes into it in advance I always find is the most challenging bit.\u201d<\/p>\n

It is not just guests who will be getting enhanced facilities; there will be \u201cbigger and better locker rooms and a bigger canteen\u201d for the near-500 staff (including seasonal staff) who typically work in the property over the course of a year. <\/p>\n

\u201cIt will have a big impact on those of us working in the hotel, and ultimately the customer should feel that as well and we can deliver a better service.\u201d <\/p>\n

The Shelbourne has 265 rooms, all of them are getting a makeover except for 40 that were renovated in 2017. \u201cThey are still fabulous,\u201d he says, adding that every 17 weeks, without fail, its rooms are taken out of the system for some \u201cminor works\u201d by the in-house maintenance team to keep them in tip-top shape. <\/p>\n

\u201cThe suites here are like a good pair of shoes \u2013 if you mind them they\u2019ll last you for years.\u201d<\/p>\n

We are having lunch in the Saddle Room restaurant, which is also due to be renovated, along with the spa and swimming pool and other elements of the ground floor operation.<\/p>\n

\u201cWe hope to have it all finished, touch wood, by the end of Q1 [2027],\u201d he says as we are delivered a pre-starter of sourdough bread with crab and caviar on top. It\u2019s delicious.<\/p>\n

What does having 80 rooms out of commission mean for room rates and occupancy?<\/p>\n

While the hotel will take a financial hit from so many bedrooms being closed, it is helped by the fact that 35 per cent of its income is derived from its ground floor bars, restaurants, functions and a spa. These are unaffected for now. <\/p>\n

\u201cIt\u2019s almost like running two businesses, particularly when 80 per cent of custom on the ground floor is locals.\u201d<\/p>\n

With so many rooms out of action, and demand greater than supply, is he able to put up room rates?<\/p>\n

\u201cI wouldn\u2019t say I\u2019m putting them up. There are market forces at play but that\u2019s an obvious and fair assumption as well. My average rate will be higher because I have fewer rooms and [a lot of] the ones that I have are suites.\u201d<\/p>\n

The average room rate, on an annual basis, would be \u20ac400-plus, he says. About 10 per cent of its mix is suites, when all the rooms are open for business. <\/p>\n

Its top-of-the-range Princess Grace suite is listed at an eye-watering \u20ac5,000 a night. \u201cThe occupancy in that room is quite high. We\u2019d probably be selling it two weeks in a month.\u201d<\/p>\n

He says demand is good and Dublin is performing \u201cquite well at the moment\u201d. <\/p>\n

\u201cAmericans are still travelling. We had a very strong April.\u201d<\/p>\n

This time last year, the business was grappling with what he calls the \u201cTrump effect\u201d, which resulted in him cancelling all Government travel. <\/p>\n

\u201cWe had a couple of direct hits at short notice so this time last year was softer than normal but has recovered fully this year. The American market remains strong for us.\u201d<\/p>\n

[\u00a0Ten luxurious Irish hotel room service experiences for your bucket listOpens in new window<\/a>\u00a0]<\/p>\n

More than 50 per cent of the Shelbourne\u2019s business comes from the US on an annual basis. <\/p>\n

\u201cWe\u2019d be quite busy in November, December, January with locals. We\u2019d have the [Six Nations] rugby in February, March and then once Paddy\u2019s Day is gone, that\u2019s it. The Americans start coming.\u201d <\/p>\n

According to Kavanagh, Americans \u201cfeel welcome here\u201d and see Ireland as \u201cvalue\u201d. <\/p>\n

\u201cIt\u2019s certainly cheaper than in the States,\u201d he adds, as our starters arrive. Mine is a cured salmon starter. It\u2019s light and fresh. <\/p>\n

Will the Ryder Cup<\/a> generate business for the Shelbourne when it is hosted in September next year at Adare Manor in Limerick? <\/p>\n

\u201cThere will be lots of pre and post business, just like when the Open [golf Major] was hosted in Portrush. We felt it as well. It\u2019s fantastic that it\u2019s coming here. The eyes of the world will be on us so I hope they take the opportunity to show what we have to offer, not just the golf course.\u201d<\/p>\n

Kavanagh has been GM at the Shelbourne since 2018 and the strategy on his watch has been to \u201cactively\u201d reduce the occupancy while increasing the rate to help \u201cmind the property\u201d.<\/p>\n

The occupancy rate was 90 per cent when he joined but is now between 83 and 85 per cent on a full-year basis. \u201cIt means we can manage the asset so much better. You can\u2019t chase every star.\u201d<\/p>\n

Kavanagh\u2019s vision for the Shelbourne was to \u201cachieve approachable luxury\u201d, with a \u201cwarmth of hospitality\u201d that isn\u2019t \u201cintimidating or standoffish\u201d.<\/p>\n

\u201cThat\u2019s why so many locals come in to the Shelbourne. Because they feel comfortable and our resident guests love that,\u201d he says, as our lamb main course is delivered. It\u2019s tender and moist with a dollop of creamy mash and a side of tenderstem broccoli that has a nice crunch to it. <\/p>\n

One of the reasons for the Shelbourne\u2019s success over the past couple of centuries has been its ability to move with the times while retaining its old-world charm. <\/p>\n

How is the Shelbourne deploying artificial intelligence?<\/p>\n

\u201cWe\u2019re at the early stages of it at the moment. Marriott work with [Microsoft\u2019s] Copilot. If you\u2019re looking for trends on food and beverage it saves you the hassle of doing it.<\/p>\n

\u201cAI can\u2019t do a lot of what I do but, used appropriately, it can help so my output might be greater. But I don\u2019t think AI is going to impact the chef too much,\u201d he says. <\/p>\n

What about robots serving food in the Saddle Room? \u201cI think it will be a while before you see that in the Shelbourne.\u201d <\/p>\n

Or robot vacuum cleaners? \u201cWe have no robots whatsoever. The problem with this hotel is that we are so old and we have lots of steps. There\u2019s only one bedroom floor that you can navigate without encountering steps,\u201d he says as we eschew dessert and order coffees. <\/p>\n

[\u00a0New operator of Shelbourne Hotel generates \u20ac10m in revenue in first two monthsOpens in new window<\/a>\u00a0]<\/p>\n

We close with his thoughts on the outlook for the hotel and the Irish economy. \u201cIf the Shelbourne is a barometer, it\u2019s good. We have contracts signed up for 2027 and 2028, money down, nothing to do with the Ryder Cup or anything like that. <\/p>\n

\u201cMy competition is often the Merrion or the Westbury [in Dublin] but sometimes my competition is in another city. And we have to keep that in mind. <\/p>\n

\u201cIreland is still a compelling offering, it\u2019s an authentic offering. The biggest outbound market in the world [the US] has an emotional connection to this country, we speak the same language, they feel welcome here. So that helps. Aer Lingus does a great job on connectivity. So I would be positive about the outlook.\u201d <\/p>\n","protected":false},"excerpt":{"rendered":"\u201cDo I look older?\u201d jokes JP Kavanagh, general manager of the five-star Shelbourne Hotel, which overlooks St Stephen\u2019s…\n","protected":false},"author":2,"featured_media":466122,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[218,72,615,61,60,83768,32861,73073,15551,63762,45546],"class_list":["post-466121","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-artificial-intelligence","tag-business","tag-dublin","tag-ie","tag-ireland","tag-kennedy-wilson","tag-ryder-cup-2027","tag-shelbourne-hotel","tag-six-nations","tag-st-patricks-day","tag-st-stephen-s-green"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/466121","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=466121"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/466121\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/466122"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=466121"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=466121"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=466121"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}