Over three quarters of Irish hoteliers surveyed (77%) plan to increase levels of investment in their business this year, according to recent industry research by the Irish Hotels Federation (IHF) in advance of its 87th Annual Conference taking place in Killarney this week.
The main areas of investment will include refurbishment projects, environmental sustainability, training and people development, and the adoption of new technologies, such as artificial intelligence.
The research estimates that hoteliers will invest a further €250 million in refurbishment in 2025, including projects targeting guest bedrooms (58% of hotels) and increased investment in ground floor, restaurants, bars and common areas (45% of hotels).
Some 61% of hotels indicate they 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 (52%), energy efficiency measures (44%), food waste reduction (57%) and additional water conservation measures (36%).
The research shows that investing in people development within the sector remains a major focus with 85% of hoteliers saying they plan to increase levels of resources specifically targeting training and upskilling across their teams over the next 12 months compared with last year.
Meanwhile, the adoption of artificial intelligence is increasingly being explored by hotels as a way to enhance the guest experience with 43% of hoteliers saying they currently use AI technology 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 having seen the benefits it has brought to their business.
“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 Michael Magner, IHF President.
"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.”
