2024 H1 Insights

After a slow start to the year, demand for tourism accommodation has picked up in recent months. All markets reported by STR outside Dublin, are now reporting Revenue Per Available Room (RevPAR) figures in line or ahead of same time last year to the end of July. Dublin continues to lag slightly behind last year due to a material increase in hotel bedroom supply within the “economy” segment which has impacted both rate and occupancy figures to date. Belfast has reported the strongest year on year improvement with a 13.6% increase in RevPAR at the end of July 2024. A total of 25k Fáilte Ireland registered bedrooms remained under government contract in ROI at the end of May this year. The number is materially down (8.5%) on the figures reported November last year.

Profit margins have come under pressure for the sector due to a convergence of factors including the hospitality VAT, wage increases and escalating sick pay entitlements, among others. Pressure is more visible in the food and beverage services sectors where margins are traditionally lower as demand is fast to react when “value for money” becomes an issue.

BOI Hotel Insights and Outlook

Bank of Ireland Business Banking: businessbanking.bankofireland.com

Bank of Ireland Corporate Banking: corporate.bankofireland.com

Contact details

Gerardo Larios Rizo
Head of Hospitality Sector

 087 795 1253
 gerardo.lariosrizo@boi.com