Occupancy rates in west decline as Dublin hotels break records

HOTELS in counties such as Galway, Clare and Mayo are struggling to fill beds as Dublin hotels show record occupancy levels.

A study on hotels in Ireland conducted by Horwath Bastow Charleton showed that average room rates in the western region are the lowest in the country.

This is despite occupancy increasing year-on-year.

“While the overall performance of the hotel industry in Ireland is robust the western seaboard continues to struggle and is not performing in line with other regions,” said the report.

Aiden Murphy partner at Horwath Bastow Charleton said: “Improved access and continued investment in the infrastructure of the western seaboard is essential for this region to grow.

“Year-on-year, the west remains the least profitable of all regions and average room rates continue to lag behind those of its counterparts. It is essential therefore that government supported tourism marketing and product development continues in this region.”

Hotels in Dublin meanwhile broke records last year according to the survey, which showed hotels in the capitalhave reached an all time occupancy high of 76.8%.

Dublin hotels earned on average €5.43 extra for every room sold last year bringing the average room rate for Dublin to hotels to €120.38 (net of VAT). September last year saw occupancy levels reach 87.1%.

The survey also found that 5,500 new hotel rooms were added to the Irish and northern markets last year with occupancy levels reaching 69.8%.

The luxury market excelled last year according to the report which said room occupancy at five-star hotels increased to 70.7%, compared to 66.4% in 2005.

This figure reached a peak level of 82.2% during the month of September and at the height of the Ryder Cup.

Average room rates for the month of September reached their highest levels ever at €200.93, up 19% year on year.

Results also revealed that 40% of the luxury market is domestic, compared to 26.3% in 2001.