Daily rates for Dublin hotels hit a record high in November
There was also a slight fall in demand, although occupancy rates are still above the European average.
HOTELS IN THE capital continue to perform well as new figures show that revenue rates per room for Dublin hotels hit a record high in November.
That is according to US company STR, which tracks the global hotel industry. According to STR, Dublin hotels reported a 3.7% year-on-year decline in occupancy rates to 78.3% for the month of November.
Overall demand was down by 2.8% compared to November 2015.
However, there was a 3.8% increase in the average daily rate for a room, which rose to €121.03, a record high for a November in Dublin.
The average daily rate is the average rental income of a paid and occupied room during a specific time period. For example, if a hotel has room income of €50,000 and 500 rooms sold, its average daily rate is would be €100.
The slight drop in demand coupled with the rise in the average daily room rate meant that revenue per available room remained flat at €94.80.
Revenue per available room is calculated by dividing a hotel’s total room revenue by the total number of available rooms it has during the period being measured.
Above average
Overall, STR found that across Europe, hotels reported 4.2% growth in occupancy year-on-year to 70.3%, meaning that despite its drop, Dublin was still well above average.
The average daily rate across European hotels rose by 1.5% to €107.14. Revenue per available room increased 5.8% to €75.36.
Several cities examined by STR recorded strong overall growth, with Berlin posting record highs for the month of November across all key performance levels such as occupancy rates, which jumped by 4.7%.
London also recorded its strongest month of 2016 in terms of growth with an 8% increase in revenue per available room to £130.33.
Earlier this year a report for Fáilte Ireland called for a series of short- and longer-term fixes to try to speed up the development of new hotels.
Over the past five years, tourist arrivals to Dublin have increased by one-third but the available accommodation in the city has shrunk 6%.
