Ireland works to stay up with demand for hotel rooms in their country.
Ireland has been facing a shortage of hotel rooms. Ultimately, this is a good problem to have for Irish hotel owners, but it does threaten to spike room rates, which could detrimentally impact their tourism.
In an effort to remedy the situation, Hospitality Ireland is calling for another 5,000 hotel rooms to be created in the next five years so that the country can keep up with the demand. That demand looks like it will only continue to grow, too. Crowe Horwath conducted a study that revealed that occupancy rates went up by two percent to 67.8 across Ireland last year, and Dublin occupancy rates went up to 77.2 percent
Somehow, Irish hotels have managed to keep their room rates low even in the face of rising demand. While the average room in Dublin costs €116.59 in 2007, today it runs for just €97.25. With these reduced rates, Irish hotels have kept profitability at levels similar to those prior to their 2007 recession. That means that Ireland is able to offer reasonable rates from profitable hotels, a great situation for hotel owners and tourists alike.
In order to keep things in their current happy balance, new rooms need to be built. Ireland is waiting for hotel developers to step up and create these rooms, and with land prices at affordable levels while occupancy rates stay high, the challenge to find developers should be short-lived.
Are you similarly unable to keep up with your demand? If so, do not hesitate toÂ
contact Parkwest General Contractors. As hospitality construction experts, we can lendÂ
our services to guide you from pre-construction to a beautifully finished product. Don't leave yourself limited by your hotel capacity; call us today!
