Occupancy rates at hotels in Dublin rose to 73% for the first nine months of the year, an improvement of almost 8% compared to the same period last year.
According to a new report by Deloitte, the average daily rate is up more than 6% and revenue per available room has risen by nearly 15%.
The average daily rate being charged by Dublin hotels in the first nine months of the year was €82.41, which indicates that rates being charged have continued to climb since the beginning of the year. In the same period in 2010, the average daily rate was €77.51.
Commenting on the latest STR Global results, Kevin Sheehan, partner in charge of Tourism, Hospitality and Leisure Services at Deloitte, said: "The results of these latest figures show that the summer season in 2011 has been considerably stronger than in 2010, which will come as a considerable relief.
"These figures correspond to recent figures from the CSO, which showed that in the period July to September of this year, the total number of overseas trips to Ireland increased by 6.5% to 2,126,200, compared to the same period 12 months earlier.
"The picture that is emerging for Dublin hotels in 2011 is one of steady recovery, albeit the margins being achieved are still relatively small. However with all key measurement indicators going in the right direction, it is clear that the careful consideration hoteliers gave to their marketing and pricing strategies have hit the right note with consumers.
"The challenge now, as consumers remain price sensitive, will be to ensure their proposition remains competitive and attractive. Fundamental to this recovery has been that Dublin is now viewed as a good value European city break destination. This will need to be maintained.
"There is no doubt that the market remains challenging for hoteliers, not least due to the on-going uncertainty in the Eurozone, which is not helping consumer sentiment both here and in target markets across Europe. However, the real positive that we can take from these figures is that hotels may now be on the road to recovery, as opposed to in survival mode. Of paramount importance will be how that recovery is managed – price competitiveness will need to be maintained, as will innovative and high quality service offerings.
"There is a balance to strike in this regard, although it is likely a challenge which hoteliers will relish, given the turbulence they have experienced over the last number of years. With a number of high profile international events coming to Dublin in 2012, from the arrival of the tall ships to an influx of American tourists for the Navy versus Notre Dame American football match in the Aviva stadium, there are numerous opportunities to capitalise on."