Over three-quarters of hotels to increase investment levels in 2025

IHF said up to €250m could be invested in refurbishment in 2025, following a period of already significant capital investment among hoteliers

IHF President Michael Magner and IHF Chief Executive Paul Gallagher pictured on arrival in Killarney on Sunday ahead of the annual Irish Hotels Federation Comnference. Photo: Don MacMonagle

More than three-quarters of Irish hoteliers plan to increase their level of investment this year, with the key focus being in refurbishment projects, environmental sustainability, training and new technology.

Recent industry research by the Irish Hotels Federation (IHF) also found that up to €250m could be invested in refurbishment in 2025, following a period of already significant capital investment among hoteliers. 

“Continued investment in our product and customer experience is a key priority for hotels over the coming year as we respond to evolving guest expectations in what remains a highly competitive tourism landscape," said IHF President, Michael Magner. 

"This strong focus on value-enhancing investment is absolutely essential for the further development of Ireland’s tourism and hospitality product and our position internationally as a leading destination for visitors and holidaymakers.”

The research was published by the IHF in advance of its 87th annual conference which is taking place this week in Killarney.

The IHF also found that some 61% of hotels plan to increase investment in sustainability across a wide range of initiatives in 2025 while a further 23% indicate they are actively in the process of exploring options to enhance the sustainability of the business. 

Of those planning to increase investment in sustainability, key areas targeted include renewable energy solutions, energy efficiency measures, food waste reduction and additional water conservation measures.

In addition, 85% of hoteliers said they plan to increase levels of resources specifically targeting training and upskilling across their teams over the next 12 months compared with last year.

The adoption of AI is increasingly being explored by hotels as a way to enhance the guest experience, the IHF also found, with 43% of hoteliers currently using AI in some form across their hotel operations. 

A further 41% say they plan to explore the adoption of AI technologies while, of those that currently use AI, 54% plan to increase investment in this area over the next 18 months. 

Results indicate that the top five areas for the adoption of AI by Irish hotels are customer service, including booking assistants and smart concierge, revenue management, personalised marketing and energy management.