With plenty of buzz surrounding Donald Trump’s recent purchase of Doonbeg Golf Club in Ireland’s County Clare, it should not be very surprising that the country’s hotel scene is doing well. The latest European city hotel survey from PricewaterhouseCoopers has ranked Dublin as top performer for 2013 in terms of RevPAR with 11.2 percent growth.
According to the Irish Examiner, this growth (among Dublin hotels) is expected to slow to just over 5 percent this year and just under 4 percent in 2015; but even so, the city would still be the top performer in Europe.
The paper notes that the only movement in the Dublin hotel market are extensions and redevelopments, rather than ground-up new developments.
According to the Irish Times, the average daily room rate for Dublin was €89 last year, putting it in 14th place among the cities surveyed. The occupancy level puts it in fourth position. The average daily room rate for Dublin is forecast to grow to €94 this year, and €96 next year. Revenue per room is expected to be close to €74 this year, and €77 next year.
And Trump isn't the only one looking to expand: One hotel company--The Dalata Hotel Group--is hoping to use proceeds from its upcoming flotation to grow its property network, either via single asset purchases or the buyout of rival groups’ portfolios, according to the Examiner. The group, the largest hotel operator in the Irish market, recently confirmed its intention to take a dual share listing on Dublin’s ESM exchange and the AIM in London later this month.
Saying that it feels Ireland’s hotel sector represents an “attractive investment opportunity”, at present, Dalata is looking to raise between €150 million and €200 million from the float. That money will go towards buying between 16 and 25 hotels around Ireland, and paying down some of the group’s debt, which stood at €4.1 million as of the end of last year.
The group’s management noted that the three- to four-star area is the most attractive market segment, with the best profit growth potential.