Europe -  Dublin

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HVS In-Depth Europe Hotel Valuation Index:   2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001

Dublin has consolidated its position as an ICT hub of Europe, and following the UK’s exit, especially within the E.U. The continued growth of the ICT sector on top the strong FIRE industries is contributing to the city’s central office population and overall hotel demand.  2020 arrested this growth to a degree however, with the Irish Central Statistics Office (CSO) recently reporting that there was an overall net decline in office-based workers in Dublin of over 7,000 in 2020, representing a decrease of 2.6% on 2019. Much of this reduction (remote working and job losses) was in administrative and support functions (13,000) which were then offset by the growth in tech-based industries and professional services. In 2021, office-based employment grew by around 19% year-on-year, on the back of the post-COVID market recovery. Much of this growth can be attributed to the tech sector, which showed resilience during the pandemic. 

As the city went into lockdown and workers were forced to stay at home at the start of 2020, the city’s hotels also closed and were then only open for essential purposes. Domestically, there were severe restrictions on movement, and coupled with standardised social distancing measures, demand for hotels was negligible for the year. With overseas visitors typically accounting for up to 80 per cent of Dublin’s tourism mix, performance dropped substantially in the year, recording a 63% decrease in occupancy to 31%, and a 28% decrease in ADR, resulting in a RevPAR decline of 73% from 2019 levels. In 2021, the city experienced occupancy rates below 20% in the first half of the year. From June onwards an increase in volume led to a year-round occupancy increase of around 30%. Overall, the city-wide RevPAR performance started to recover in the second half of the year but stayed well below historical levels on a yearly basis. 

Dublin’s lack of hotel supply was somewhat of an issue until 2017; since when over 3,000 rooms have been built to address this perceived shortfall across mainly the select service and lifestyle brands including Hard Rock, Moxy and Aloft. Currently, some 3,000 rooms are in the pipeline, which represents around 12% of the city’s current supply. Interestingly, independent hotels represent the majority of the new supply with only one branded hotel in the pipeline, the-247 room CitizenM Dublin, which is planned to open in February 2024.

There were only around twenty hotel transactions across Ireland in 2020, which came to around eight in 2021. The most notable transactions in Dublin in 2021 include the sale of the 141-room Morrison Hotel for around €460,000 per key and the 157-room Moxy Dublin City, which transacted for around €222,000 per key. 

Overall, hotel values in Dublin increased by 4.3% in 2021, as recorded in our 2022 European Hotel Valuation Index. For this market, a historic annual occupancy of around 80% suggests a balanced mix of demand drivers, which should lead to a swift recovery period  as the pandemic recedes.

Change In Value For Market: (€Euro)

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: More than -10%

For more information, please contact:

Sophie Perret, MRICS, MBA
Senior Director
[email protected]
  • +44 20 7878 7722 (w)
  • +44 0 7725781037 (m)
Nikola Miljković
Associate
[email protected]
  • +44 0 2078787724 (w)
  • +44 0 7593572865 (m)