A recent survey by accountancy firm PricewaterhouseCoopers shows signs that the hotel sector in Dublin is beginning a tentative recovery from the disastrous impact of the global economic crisis. In fact, according to the report, entitled the ‘European Cities Hotels Forecast’, hotel rooms in Dublin recorded the second highest growth in revenue per available room (RevPAR) among 19 European cities last year.

RevPAR is worked out by multiplying the average room rate of a hotel by its occupancy rate. In 2012 Dublin hotels recorded RevPAR growth of some 13.9 per on the back of 11.7 per cent growth in 2011. St Petersburg experienced the highest growth in RevPAR last year with 14.1 per cent, whilst Prague showed 13.1 per cent growth and Paris 9 per cent.

Speaking about the results of the PwC survey, Keith McCormack, director of Visit Dublin said: “These figures are a great reflection of Dublin’s reputation as a leading destination providing value for money and clearly illustrate Dublin’s international attractiveness, particularly with the city outperforming leading world-class destinations such as London and Paris.”

PwC point to several factors that have helped the recovery in occupancy rates since 2011. These include the wide range of events at venues such as the Aviva Stadium, the Convention Centre Dublin and the O2 as well as the availability of good value rooms in Dublin city centre and an improvement in consumer confidence.

Nevertheless, revenue for 2012 was still 20 percent below the peak achieved in 2006 and the PcW forecast expects RevPAR growth to slow in 2013 due to the prolonged economic downturn. Ann O’Connell, PwC Ireland Consulting Partner, Hospitality and Leisure Group said: ”A return to a steady state of economic growth is not likely in the short term and the European hotel industry has to adapt to this ‘new normal’ as well as to new trends and challenges facing the sector.” Dublin hotel room RevPAR is forecast to grow at a much slower 3.1% this year. “Room rates are unlikely to reach the heady days of 2007 any time soon. Nonetheless, occupancy is now back to pre-recession levels and, from a consumer point of view, Dublin continues to offer some of the best value-for-money hotel rooms in Europe.” O’Connell went on to say.

The average daily room rate for hotels in Dublin is forecast to reach €90 per room this year, whilst the average revenue per available room is expected to be in the region of €68.

It has been reported that a loan linked to the Moran Hotel Group has been sold by Lloyds Bank to Canyon Capital Advisors, a US investment management firm. The Moran Group owns the Bewley’s hotels in Dublin which are located in Ballsbridge, Leopardstown, Newlands Cross and Dublin Airport as well as the Red Cow Inn in west Dublin. The group also owns hotels in London, Leeds and Manchester. Much of the money owed by the Moran Group is believed to be linked to the takeover of the Bewley’s hotel chain in 2008. The share of the debt held by Lloyds was originally advanced by its Bank of Scotland (Ireland) unit.

Lloyds is selling off its Irish loans after taking, according to Bloomberg News calculations, around £11.8bn in impairment charges on them since the crash in Irish property values began in 2008. The sale of the Moran Group loans continues Lloyds withdrawal from the Irish market. In November last year the landmark, 500-bedroom Burlington Hotel in Dublin, was bought by Blackstone Group, another US-based, global investment and advisory firm. It was reported that the hotel was sold for around €67 million, less than a quarter of the €288 million that was paid by an Irish developer in 2007 for the property. In the same month Lloyds also sold a £1.5bn (€1.8bn) portfolio of Irish property debt at around 10 percent of its face value in an aggressive asset sell-off.

Lloyds is reported to have sold some €140 million of Moran Group loans at a discount of around 70 per cent. In an email to Bloomberg News, Moran Group said it was “at an advanced stage of a restructuring plan” for its Irish hotel business. Achieving a debt-reducing restructuring deal may now prove easier since the new owner of the loans paid only a fraction of their face value.

Iconic Dublin boutique hotel, the Morrison, closed its doors at the end of November in order to undergo a multi-million euro refurbishment. The hotel is located in the centre of Dublin on the North-side of the river Liffey.

Owner of the hotel, Morrison Estate Holdings, is reported to be injecting some €7m into a complete redesign of the hotel’s 138 rooms and suites. At the beginning of the year we reported that the Morrison was about to be bought by Yelena Baturina, wife of the former mayor of Moscow Yury Luzhkov and one of the richest women in Russia.

The operator of the Morrison, Martinez Holdings, says the refurbishment will reposition the hotel as a “vibrant, hip hotel and eatery.” Stephen Mulligan, Director for UK and Ireland at Martinez Hotels and Resorts said: “Ireland’s hospitality sector has been hard hit by the recession and there’s obviously been a huge period of consolidation in recent years. However, we feel that Ireland’s tourism industry has a lot to offer local and international guests and is certain to rebound based on the collective efforts already being made to ensure the country remains an attractive and viable place to visit.”

The investment in the Morrison goes somewhat against the grain in a Dublin hotel sector that has been practically stagnant since the onset of the current economic crisis but must surely represent good news for the sector.

Irish Architect Nikki O’Donnell of NODA  in Dublin will be in charge of the re-design of the bedrooms and lobby area of the hotel whilst international consultant Robbie Bargh from The Gorgeous Group in London has been engaged to revamp the food and beverage offering at the Morrison.

General Manager of the hotel, Patrick Joyce, who was appointed in October, will oversee the work. “It is exciting to be joining the hotel as we embark on a major refurbishment of the premises. I am particularly enthusiastic about the renewed emphasis on our food and beverage offer and the opportunities this will create for Irish artisan producers throughout the country,” he went on to say. “We are keen to bring customers on the journey with us and they can expect to see all the pieces of the puzzle revealed over the next couple of months.”

The Shelbourne Hotel in Dublin is planning to open a new spa towards the end of this month. The landmark five-star Dublin hotel is part of Marriott Hotels and indeed belongs to the groups Renaissance Hotels brand. The Spa at The Shelbourne will be installed over three floors and will comprise six treatment rooms, a luxurious chandelier-lit relaxation area, a manicure room, a pool, a sauna, steam-room and dance studio. The skincare ranges will be provided by Elemis and Pevonia.

Stephen Hanley, general manager of the hotel, says that: ”The Spa at The Shelbourne is another string to the bow of Dublin’s favourite hotel. We are delighted to partner with these two superb skincare product ranges which, with their focus on excellent quality and a luxurious sensory experience, make a perfect fit.” Apart from hotel guests the Spa at the Shelbourne will be actively marketed at the day spa market and the gym will offer limited memberships.

Earlier this month it was reported that the financial performance of the company that manages the five-star Shelbourne was also much healthier in 2011 than that reported for 2010. Pre-tax losses at the company that manages the five-star hotel in Dublin narrowed last year by 98 per cent to €104,282. In accounts filed with the Companies Office, Torriam Hotel Operating Company showed a marginal increase in turnover at the hotel from €9.3 million in 2010 to €9.4 million in 2011. The €104,282 pretax loss compares with a €7.6 million loss for 2010. However, the 2010 figure was distorted by costs of some €7.5 million that were incurred by Torriam in a legal case taken by the owner of the hotel, Shelbourne Hotel Holdings Ltd (SHHL).

Torriam recorded an operating profit of €86,514 last year, however, interest payments of some €190,000 nudged the company into the red.

The Dalata Hotel Group has filed accounts showing an improvement in overall performance for the year ending in December 2011. The group recorded earnings before interest, tax, depreciation and amortisation (ebitda) last year of €2 million, up from the €800,000 of such earnings reported for 2010.

The company was initially set up in 2007 when it purchased the operating business of eleven hotels in Ireland. The next year the firm launched its Maldron Hotels brand. Maldron now has ten three-star and four-star hotels in Ireland. The company also manages hotels on behalf of asset owners meaning it operates a total of 4,500 bedrooms in Ireland and the UK and employs around 2,500 staff.

The Directors report said: “Trading conditions in the sector improved in 2011 with some demand growth in Dublin. As the year progressed there was stabilisation in the rest of the country, although some regions saw demand decline further,” and Chief executive of the Group, Mr Pat McCann, expected earnings at the company to increase by 40 per cent on those recorded last year. He said the anticipated growth this year arose from the improved performance in its Dublin hotels as well as the group operating more managed properties.

The group has demonstrated an ability to expand even in the current challenging economic times taking on management contracts for businesses such as the Citywest Hotel in Dublin and the Heritage Golf and Spa Resort in Portlaoise.

A recent report from Failte Ireland also shows that the hotel sector experienced a jump in demand in the first half of this year. Preliminary figures show bookings from overseas visitors were up 14 percent between January and July. Failte Ireland pointed out that the hotel sector is doing well in urban areas. “It’s always welcome to see an increase like that,” chief executive Tim Fenn said. ”From our own barometer we have preliminary indications that Dublin has had a very good year.”