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Slowed but Continuous Growth of Hotels in Dublin
Hotels in Dublin keep showing continuous growth in profit per room, even though the metric is slowing down. In February 20017, the year-on-year growth estimated 4.5%. This is quite a modest result, taking in consideration that the Irish capital posted the profit growth of 30.1% in 2015 and 19.9% in 2016. Despite the slowdown, the profit growth of Dublin hotels is among the fastest in whole Europe.
The occupancy fell down a bit by 2.3%, but the drop was compensated by a significant increase in the average room rate of 6.9% to 144.84 euro. Naturally, RevPAR (revenue per available room) continued its positive trend, reaching the growth of 3.7% (100.75 euro).
In the nearest future, Dublin hotels will have to deal with a number of problems and will probably need to search for new ways of cutting costs as 18 new hotels are set to open in the city within the three next years. They will add 1,610 bedrooms to the hotel supply of the city. The most notable additions are the 178-key Clayton Hotel Charlemont and the 202-key Aloft Dublin City.
Hotels in another popular European destination, Frankfurt, posted nearly flat RevPAR, but the profit increase estimated 3.7% thanks to the growth of non-room revenues. The increase in occupancy of 0.4% was completely offset by the fall of average room rate of 0.4% to 158.42 euro. However, the growth of such non-room revenues as Conference and Banqueting (+8.7%) and Food and Beverage (+5.3%) helped to increase TrevPAR (total revenue per available room) by 1.6%.
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