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Dublin hotel revenue growth second highest in Europe

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According to a recent report by HVS the global hotel and hospitality consultancy, the Dublin hotel market was the second best performing European market by valuation in 2015.

HVS’ hotel valuation index for 2016 shows that the revenue per available room (RevPAR) of Dublin hotels increased by 13.4 per cent in 2015. This came on top of the previous year’s positive performance which also saw values rising by some 13.2 per cent during 2014.

The report shows that the Dublin hotel sector benefited from the second strongest RevPAR increases in Europe in 2015, just behind Madrid which topped the performance table. The HVS report indicates that on the back of “strong interest from investors, a rise in visitor numbers, and the fact the city has a limited pipeline for new properties”, Dublin out-performed other major cities like Athens, Birmingham and Manchester. Compared to Dublin’s double-digit growth, the European average was a mere 3.6 per cent. The report also highlighted the fact that, over the next five years, the city could expect an additional 5,000 rooms to become available in the capital.

The price of an average room in Dublin also showed an increase of some 20%, going up from €108 in 2014 to €129 in 2015.

However, at the Irish Hotels Federation’s conference held recently in Killarney, the new president of the IHF, Joe Dolan, pressed home the need for a five-year product development plan for Irish tourism. He warned that there was no room for complacency and that the hotel sector should not be fooled into thinking that the economic improvements taking place across Ireland’s major overseas markets could make up for the underlying challenges that faced the industry. Mr Dolan said: “Our industry has benefited enormously from positive economic tailwinds from North America and Britain in recent years, contributing to impressive growth in overseas visitor numbers. While this has provided tourism businesses with a much-needed boost, we cannot afford to take recent successes for granted – particularly at a time of increased uncertainty in the global economy. It’s vital that we focus on achieving sustainable growth while safeguarding our market share against potential risks.”