A new report by property experts Christie & Co predicts a total of 2,000 bedrooms will be added in Dublin over the next five years as demand for space in the capital is at an all-time high.
The Irish Times reports that, according to Christie & Co the added accommodation will increase the amount of bedrooms in Dublin by 14 per cent and the national stock by 10 per cent.
It will, says the report, place extra pressure on occupancy rates outside the capital, as the vast majority of new hotel space will be built in Dublin, catering to demand in the city.
Demand for bedrooms in Dublin has grown considerably over the last three or four years, which actually has over 3,000 fewer beds now than it did in 2010, according to recent data released by Fáilte Ireland.
“An increase in hotel room supply will enhance Dublin’s competitiveness and attractiveness as a destination but occupancy is likely to suffer as new supply comes on stream. The biggest risk to the sector is that hoteliers will discount in an effort to retain market share,” says Maureen Bayley of Christie & Co Ireland.
The report says the increase in stock can attract more branded properties as it will meet "latent demand". The ease of supply constraints would also make Dublin more attractive for events.
A report by PwC this week revealed that Dublin hotels recorded the second highest occupancy rates in Europe behind London, while rates rose at the fastest rate of any city in the continent.
