According to new data from consulting firm CBRE Ireland, the average cost of renting a hotel room reached a record level in May.
The average daily rate (ADR) this month was €209, 3.5% higher than the previous monthly record.
Which was purchased last September.
So far this year, the ADR for all hotels in the capital is around €170, reports RTE.
CBRE said occupancy remains high across all Irish cities, including Dublin.
From January to the end of May, occupancy in Dublin averaged 78%, which is in line with the levels reached in the same period in 2019 before the pandemic.
CBRE reported that transaction activity in the hotel sector also increased in the second quarter of the year, reports RTE.
Irish hotel transactions worth €91 million were completed between April and the end of June in six separate deals.
In the first six months of the year, EUR 135 million of capital was invested in Irish hotels, reports RTE.
CBRE said development activity remains strong despite rising construction costs and credit challenges.
“Private investors and family offices are particularly active in the current market,” said Director and head of research at CBRE Ireland, Colin Richardson, reports RTE.
“The hotel sector remains attractive to institutional investors and lenders given the strong trading performance of both Dublin and regional hotels,” reports RTE.
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