DUBLIN IS EXPECTED to have the fastest-rising hotel room prices among major European cities both this year and the next.
A report from PwC predicted the capital’s average daily room rate would hit €102 in 2015 and increase further to €109 in 2016 – putting prices back on par with their 2007 peaks.
A lack of new building meant occupancy rates rose to 78% last year, the fourth-highest in Europe, which is past the previous record set in 2006.
No new hotels are expected to open in the city this year, although some are increasing capacity through extensions and other works.
But Dublin remains a long way outside the most expensive cities across Europe, ranking only 13th on the list of pricey destinations for this year.
In comparison, the average rate in Europe’s dearest city, Paris, is expected to hit €257 per night this year – up from €252 in 2014.
Here are the most-expensive destinations for 2015, according to PwC’s forecasts:
‘A star performer’
PwC Ireland’s Jennifer Gillen said Dublin was a “star performer” in Europe for hotel owners, based on the extra money they were now making from each room.
Dublin continues to offer good value for visitors, with rooms considerably cheaper than European cities such as Paris, London, Rome, Amsterdam, Barcelona – it is important that we continue to stay competitive and offer good value,” she said.
However the report also noted hotels were facing increased threats from a range of competitors, from home-sharing websites like Airbnb to “new-style hostels”.
In said in one of the most costly hotel markets, Geneva, the stock of Airbnb properties had hit 16% of the city’s total available rooms and they were competing directly with hoteliers.
In Ireland, the Revenue Commissioners recently clarified its position that local Airbnb hosts were liable for tax on their rental income. One host told TheJournal.ie the move would discourage people from making rooms available on the site, further pushing up prices in the city.
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