Dalata CEO Pat McCann has said he believes that there will be an undersupply of rooms in the Dublin hotel market for at least another three years as a result of construction cost inflation and more expensive funding.
Speaking to The Irish Independent, McCann said he expects that only 1,200 of a projected 1,600 new hotel rooms will open in Dublin in 2019 and he dismissed suggestions made by estate agency Savills that 3,000 new rooms will open in the capital next year.
The Challenge
The Dalata CEO asserted, "Two things have happened: building inflation for material and labour will probably make some of these projects questionable. What you'll find then is that funders will start to question whether they make sense or not. That's going to be the challenge."
© 2019 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.
