Dublin hotels continue to make gains in H1 2012
Published 8 August 2012
Deloitte, the leading business advisory firm, has released the Dublin hotel figures from STR Global for H1 2012. Once again, the figures demonstrate that the hotel industry in the capital is continuing to make gains across all performance indicators. Occupancy levels were up 2.1% on the same period last year, the average daily rate (ADR) was up 7.8% and revenue per available room (RevPar) rose by 10%.
Occupancy levels in Dublin hotels for the first half of the year stood at 70%. The ADR figure was €86.91 and the RevPar figure was €60.94. Figures for the same period last year were occupancy levels of 69%, ADR stood at €81.32 and RevPar was €55.92.
Commenting on the H1 2012 STR Global results, Kevin Sheehan, Partner in charge of Travel, Hospitality and Leisure Services at Deloitte, said:
“The increases observed over the first half of the year are not as significant as those achieved in the same period in 2011. However we must remember that the gains made last year were on the back of significant drops in activity in the previous years. This trend was also demonstrated in the Q1 2012 findings.
“One of the positives that we can take from the results is that significant percentage increases have been observed in RevPar - indication that while occupancy levels are not increasing at the same rate as last year, hoteliers in Dublin are driving performance through room rate which is directly affecting the bottom line.
“However, hoteliers will need to be cognisant of the fact that one of Dublin’s key selling points is that it is now considered a good value city break destination. A challenge for the market is not only communicating that message to the consumer, but also maintaining this favourable price proposition. In order to deliver long term growth, the focus needs to be on increasing occupancy levels as a means of driving profitability, while maintaining competitiveness on rate.
“Achieving occupancy growth will be a challenge as hotels in the capital are still operating in a market with constrained demand. For example, recent figures released by the Central Statistics Office show that trips to Ireland by overseas visitors remained flat in the first half of this year, compared to the same period last year. Dublin needs to compete not just with other tourist destinations within Ireland, but also against the other capital cities of Western Europe to boost occupancy rates.
“However, it is positive that the performance indicators that contribute to profitability are all continuing to trend upward. Performance is holding steady quarter by quarter, and with the launch of initiatives such as The Gathering 2013, the industry is playing its part in ensuring that performance continues to move in the right direction.”
Hotel performance in Dublin – H1 2012
|2012 Quarter 1||60.9||1.8||82.87||4.9||50.50||6.8|
|2012 Quarter 2||79.2||2.4||89.98||9.9||71.26||12.5|
|June YTD 2012||70.1||2.1||86.91||7.8||60.94||10.0|
Source: STR Global
Percentages are increases/decreases for the same time period in the previous year.
Notes to editors:
All analysis in local currency.
Dublin H1 2012 data is based on monthly and daily results for the months January – June 2012.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/ie/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
The information contained in this press release is correct at the time of going to press.
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About STR Global
STR Global provides clients-including hotel operators, developers, financiers, analysts and suppliers to the hotel industry-access to hotel research with regular and custom reports covering Europe, Middle East, Africa, Asia/Pacific and South America. STR Global provides a single source of global hotel data covering daily and monthly performance data, segmentation data, forecasts, annual profitability, pipeline and census information. Hotel operators can join the surveys on a complimentary basis and benefit from free industry data. STR Global is part of the STR family of companies and is proudly associated with STR, RRC Associates, STR Analytics and HotelNewsNow.com. For more information, please visit www.strglobal.com.