Property group Jones Lang LaSalle (JLL) has said that it expects to see upwards of 1,300 new hotel rooms to open in Dublin this year, an increase of 6% over current levels.
The increase in room supply is coming from numerous new developments, including the soon to be open Iveagh Garden Hotel on Harcourt St, the Clayton Charlemont near the Grand Canal and the Maldron Hotel on Kevin St.
RevPAR, or revenue per available room, is expected to slow somewhat over the year as a result - down to 5% growth this year, as compared to 7.8% in 2017. Regardless, Dublin achieves come of the highest occupancies in Europe, currently standing at 84%.
JLL is predicting that Galway City Centre and Dublin Airport are both primed for growth in terms of hotel developments, especially given Galway's status as the European Capital of Culture in 2020.
“Whilst these figures are fantastic for the industry, the biggest challenge facing the Irish hotel market is Brexit,” said Dan O’Connor, senior vice president of hotels at JLL. “Ireland is experiencing a decline in UK visitation, and UK demand may weaken further as the British consumer faces into higher inflation and economic headwinds in 2018.”