Pictured launching PwC's 2017 European Cities Hotel Forecast are (l-r):
Dervla McCormack, Consulting Partner, PwC Hotel & Leisure Practice; Paul Carnell, Sales Director, The Convention Centre Dublin and Jennifer Gillen, Senior Manager, PwC Hotel & Leisure Practice.
The Forecast reveals that Dublin hotels had the highest occupancy in Europe in 2016, higher than London, Amsterdam and Berlin and is forecast to stay on top in 2017 and 2018.
According to PwC European Cities Hotel Forecast for 2017 and 2018, Dublin hotels had the highest occupancy in Europe in 2016, higher than London, Amsterdam and Berlin, and are predicted to stay on top in that metric in 2017 and 2018.
Occupancy levels in Dublin hotels for 2016 ranked the first in Europe, and occupancy rates for Dublin are expected to remain top of the European league table for 2017 and 2018.
Dublin had the second highest Revenue per Available Room (RevPAR) growth in Europe in 2016 of 16%, and is expected to have the second highest RevPAR growth in 2017. This is being driven primarily by growth in the average daily rate (ADR) in Dublin, which is expected to reach €138 in 2017 and €147 in 2018 – considerably higher than the 2007 peak of €109.
Speaking about the Dublin market Jennifer Gillen, Senior Manager, PwC Ireland Hotel and Leisure Practice, said: “A myriad of factors including the continued growth in our economy, improved air access, and increased number of visitors to the city, helped increase the demand for hotels in Dublin. 2016 marked double digit growth in RevPAR for the third year in a row, primarily driven by a further increase in room rates. While Brexit may create uncertainties, with limited new supply coming on stream in 2017, further RevPAR growth is expected for Dublin hotels.
“While Dublin continues to offer relatively good value for visitors, with cheaper rooms than European cities such as Geneva, Paris, London and Rome – it is important that we continue to stay competitive and offer good value for money.”
While security concerns saw mixed fortunes for some city destinations in 2016, overall it was another record breaking year for European tourism with 12m more visitors and a total of 2.8bn nights spent in tourist accommodation. An influx of tourists from the US and a booming Asian market should drive hotel trading in 2017, with the majority of key city destinations likely to experience continued growth. The UN World Tourism Organisation forecasting a 2 to 3% growth in global tourism in 2017.
Dervla McCormack, Consulting Partner, PwC Ireland said: “Despite general elections across Europe this year the outlook for hotels in Europe is largely positive. Many destinations have invested in improving and promoting the quality of their tourism services and with tourism set to rise again this year, many of the cities can expect good growth.
“A strengthening dollar will make trips to Europe popular, and weak Sterling will make London, in particular, even more attractive. However, this will be balanced by unprecedented geopolitical uncertainties, and travellers’ security and safety concerns remain an issue.”
At the forecast launch, sales director of the Convention Centre Dublin Paul Carnell said: “The results this year show continued improvement and demonstrate how vital the hotel industry is to building sustainable business tourism in Dublin. The availability of a competitive and quality network of hotels against key European competitor cities is key to attracting international conferences to Dublin.
"I’d like to congratulate our industry colleagues on another great year. We look forward to seeing further investment in the sector and continuing to work in partnership to position Dublin on the international stage as a great place to do business.”
Notes to editor:
Featuring 17 of Europe’s most important gateway cities, PwC’s forecast provides a breakdown of revenue and occupancy forecasts, opportunities driving tourism and investment in 2017 and 2018 and the economic outlook for each city. The cities in PwC’s econometric forecast are all important gateway cities and/or business and tourism centres.