Dublin hotels are most in-demand in Europe

The cost of rooms will continue to rise over the next two years...

Dublin hotels are most in-demand in Europe


Dublin hotels had the highest occupancy in Europe last year, according to a new report from PricewaterhouseCoopers.

With more demand for rooms in the Irish capital had an occupancy rate of 82.5%, higher than in London (81.3%), Amsterdam (78%) and Berlin (77.1%), PwC's European Cities Hotel Forecast predicts that the city will stay top in that metric over the next two years. Occupancy should hit 83% in 2017.

Dublin had saw growth of 16% when it came to revenue per available room (RevPAR), the second highest increase in Europe last year. It is expected to retain that position in 2017.

This growth is being driven primarily by growth in the average daily rate (ADR) in Dublin, which is expected to reach €138 in 2017 and €147 in 2018 – considerably higher than the 2007 peak of €109.


Porto tops the 2017 growth table with 14.8% RevPAR forecast growth, followed by Dublin (8.7%) and Budapest (6.8%), Madrid (5.9%), Lisbon (5.6%), Prague (5.5), Barcelona (5.4%), Frankfurt (4.5%) and Paris (3.6%).

There’s no change at the top of the ADR rankings. In 2017 the highest ADRs in euro terms are Geneva (€300.2) Zurich (€244.9) followed by Paris (€229). Paris room rates remain high despite a 4% fall in 2016 and forecast further falls in 2017.

Jennifer Gillen, senior manager of PwC Ireland Hotel and Leisure Practice, said:

"A myriad of factors including the continued growth in our economy, improved air access, and increased number of visitors to the city, helped increase the demand for hotels in Dublin. 2016 marked double digit growth in RevPAR for the third year in a row, primarily driven by a further increase in room rates.

"While Brexit may create uncertainties, with limited new supply coming on stream in 2017, further RevPAR growth is expected for Dublin hotels.

“While Dublin continues to offer relatively good value for visitors, with cheaper rooms than European cities such as Geneva, Paris, London and Rome – it is important that we continue to stay competitive and offer good value for money.”

PwC Ireland consulting partner Dervla McCormack, said: 

"Despite general elections across Europe this year the outlook for hotels in Europe is largely positive. Many destinations have invested in improving and promoting the quality of their tourism services and with tourism set to rise again this year, many of the cities can expect good growth.

"A strengthening dollar will make trips to Europe popular, and weak Sterling will make London, in particular, even more attractive. However, this will be balanced by unprecedented geopolitical uncertainties, and travellers’ security and safety concerns remain an issue."

Despite security concerns resulting in mixed fortunes for some city destinations in 2016, overall it was another record-breaking year for European tourism with 12 million more visitors and a total of 2.8 billion nights spent in tourist accommodation.

An influx of tourists from the US and a booming Asian market should drive hotel trading in 2017, with the majority of key city destinations likely to experience continued growth. The UN World Tourism Organisation forecasts a 2% – 3% growth in global tourism in 2017.