Midlands hotels show highest growth year on year

Midlands & East hotel room rates almost recover to pre-recession levels

Midlands hotels show highest growth year on year
By Express Reporternews@leinsterexpress.ieTwitter: @laoisnews

Crowe Horwath, Ireland’s leading advisors to the Irish hotel industry, launched its 22nd Annual Ireland Hotel Survey last week which provides a detailed analysis of the performance of Irish hotels both on a national and regional perspective.

The report, which is compiled from Irish hotels’ 2016 accounts, reveals that key performance metrics have enjoyed a period of sustained improvement with a sixth consecutive year of growth in occupancy levels, average room rates and profit per room.

Laois, which has 10 hotels with 529 rooms which are registered with Fáilte Ireland is surveyed as part of the Midlands & East area which has a total of 12,995 rooms in 232 hotels in the region.

Midlands & East region hotels showed the highest year-on-year growth in occupancy levels across the country, up from 65% in 2015 to 68.5% in 2016 with average room rates seeing an uplift of 8.6% to €91.40.

The year-on-year increase in occupancy of 3.5 percentage points in Midlands and East was just over twice the increase recorded in Dublin of 1.6 percentage points.

However, performance in the Midlands and East region still trails the national average where occupancy levels were at 74% with Dublin leading the way at 82.3% occupancy.

The report also found that hotels in this region, which rely on the lucrative wedding trade representing one in twelve room nights, are coming under pressure from alterative wedding venues also offering accommodation.

Average room rates in Midlands & East grew by 8.6% to €91.40 in 2016, up from €84.20 in 2015 and are ahead of the average of €79.77 achieved in Western Seaboard hotels.

Dublin average room rates are highest at €128.27 per night and have now surpassed 2006 peak prices of €120.38 by €7.89 whereas Midlands & East region average rooms rates for 2016 are €3.02 lower per night than peak rates recorded in 2006 of €94.42 on average per night.