The occupancy rate for Dublin hotels has returned to 2007 levels with rates of 79% last year compared with 67% in 2008. The occupancy rate for this year is forecast at 80%. However across Europe in real (inflation-adjusted terms), room rates remain low compared with the pre-recession period.
In a European report [pdf], PwC, the Big 4 accounting firm, also said that revenue per available room in Dublin rose 11% in 2013 and its projected increase for revenue per room for this year is highest for Dublin, followed by London and Paris, both at 3.8%. These are followed by Edinburgh, Berlin, Frankfurt, Vienna and Moscow.
The average daily room rate for Dublin was €89 last year, a 14th rank among 18 cities surveyed. The occupancy level puts it in fourth position. The average daily room rate for Dublin is forecast to grow to €94 this year, and €96 next year.
However, in terms of where hotels are compared to before the recession, in nominal terms the market is almost back at its pre-recession peak (reached during 2007) but it remains significantly behind in real terms. For example, European ADR (average daily room rate) is now only 5.7% below its pre-recession levels in nominal terms but 17.9% lower in real terms.
There are 18 cities in this econometric forecast - - "all are important gateway cities and/or business and tourism centres and some are en route to becoming mega cities. The 18 reflect the challenges facing other cities in Europe where position on the economic and hotel cycle is crucial, and some cities are clearly better placed to grow than others. We anticipate growth in 17 out of the 18 cities in both 2014 and 2015."
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