The report compiled by professional services firm JLL claims 3,000 additional rooms are urgently needed to meet demand in the city.
Failure to deliver the additional accommodation would pose “a risk that spiralling room rates will negatively impact Dublin’s reputation and attractiveness on the international stage”.
Furthermore, occupancy levels would not be adversely affected by delivering the additional capacity, according to JLL senior vice president Daniel O’Connor.
“Improving levels of corporate and leisure bed night demand in Dublin City Centre are fuelling the demand for new hotel developments,” said Mr O’Connor.
“Such is the strength of the hotel operating market, we estimate that average occupancy levels in the city would remain at a healthy 80%, even if 3,000 additional rooms were to come online today.”
A spokesperson said the IHF agreed 3,000 new rooms would be required if demand continues to grow at current rates but warned that there are obstacles to bringing such capacity on stream.
Organisers of this week’s Web Summit claimed hotels were charging extortionate fees during the event.
The Irish Hotels Federation (IHF) rejected this, saying prices were competitive for the week and added that thousands of cheaper hotel rooms had been made available at advanced booking rates by the IHF but that the offer was declined by Web Summit “for its own commercial reasons”.
Further claims by hotel booking site Trivago were also batted away by the IHF.
Trivago claimed room prices reached a peak of €191 per night during the event, 43% more expensive than bookings for the same day next week.
The IHF disputed the figure, saying it was based solely on bookings on the site, which account for only a tiny proportion of the overall number and is not representative of prices which averaged €146 and peaked at €155.
JLL identified more than 3,400 planned new hotel rooms but added that only about 50% of the planned extensions and new builds have received planning permission to date.