Hotel rates in Dublin, Belfast to stay lowest

HOTELS IN Dublin and Belfast are starting to attract more guests, but the two cities will remain bottom of the league in terms of room rates, according to a report published yesterday.

Occupancy and room rates are growing in Dublin, the report from PricewaterhouseCoopers states, but the city is likely to remain among the cheapest in Europe until next year at least. The report, Best Placed to Grow, European Cities Hotel Forecast 2011 2012,shows that occupancy rates in Dublin hotels are likely to grow by 6 per cent this year and 2.8 per cent in 2012.

The average hotel in Dublin will let 71 per cent of its rooms this year, rising to 73 per cent in 2012.

The report predicts that hoteliers will charge an average of €81.80 a day for each room this year, and €83.90 in 2012.

However, rates will be among the lowest in Europe next year. Of the 17 cities included in the report, only Belfast will be cheaper at €48.30 a night.

PwC predicts that occupancy rates in Belfast will stay flat at 64 per cent this year.

In 2012, the city’s hotels will let an average of 68 per cent of their rooms but the rates they charge will actually fall.

The firm’s report states that on average, Belfast hoteliers are charging €51.70 a day for every room, this will fall next year to €48.30.

This means that Belfast hotels will earn just €32.80 for every room available in 2012, compared to €33.10 this year.

In contrast, Dublin hotels will earn an average of €52.80 a day for every available room this year, and €61.40 next year.

The estimate of revenue for every available room is lower than the actual room rate, as it includes all rooms, instead of just those that are let.

On average, the report states that hotels in the 17 European cities surveyed will earn €99 a day for every available room, indicating that the two Irish cities are likely to remain far cheaper than other destinations next year.

Similarly, the report estimates that the average rate per room in the 17 cities will be €136 next year, far ahead of the rates that hoteliers in Dublin or Belfast can expect to charge next year.

In relation to Dublin, the report states that there are 18,900 rooms spread across 157 hotels in the city.