Dublin hotels sector records second-highest occupancy rate across European cities

The capital's hotels were effectively full four out of every 10 nights in the 12 months to April, with 146 nights exceeding 90% occupancy, new report shows

In the year to April, Dublin hotels recorded an occupancy rate of 84.1%, putting it behind only Edinburgh, at 84.6%, in comparison to other European cities.

The hotel sector in Dublin recorded the second highest occupancy rates among European cities during the 12 months to April this year, beating out destinations such as London, Barcelona, and Paris, a new report by Savills shows.

In the year to April, Dublin hotels recorded an occupancy rate of 84.1%, putting it behind only Edinburgh, at 84.6%, in comparison to other European cities. The average occupancy rate across Europe stood 71.1%.

According to Savills, Dublin hotels were effectively full four out of every 10 nights during this period, with 146 nights exceeding 90% occupancy.

The industry refers to above 90% occupancy as “compression nights”, as demand leaves very little bedroom capacity available.

“Representing 40% of the year, Dublin recorded significantly more of these high-demand nights than every other major European city, underlining the strength of both business and leisure travel to the capital,” Savills said.

Director of hotels and leisure at Savills Ireland Tom Barrett said the “next chapter of Ireland's hotel story” was likely going to be regional as international visitors “increasingly want authentic experiences centred around heritage, food, golf, wellness and the natural environment”.

“Demand for those experiences already exists, but in many parts of the country, the supply of high-quality luxury accommodation hasn't kept pace. That presents a compelling opportunity for investment in distinctive regional hotels that can capitalise on Ireland's growing international appeal,” he said.

The strongest opportunities are no longer confined to Dublin; they're increasingly found in locations that can offer something unique.

According to Savills, Ireland is no longer simply benefiting from a post-pandemic recovery, but is outperforming many competing European destinations on the strength of long-term demand.

Mr Barrett said Ireland’s hotel performance was particularly impressive given it was not driven by a single factor.

“Strong business travel, international tourism, major concerts and sporting events and the Wild Atlantic Way all play an important role, but equally important is the depth and diversity of demand across the market. That gives Ireland a level of resilience that relatively few European hotel markets can match,” he said.

The report also highlighted the importance of the US market, with American visitors accounting for about one-fifth of overseas visitors to Ireland while generating 41% of international tourism expenditure.