Dublin Hotel Market Spotlight YE August 2025

OVERVIEW

• The sample of branded full-service hotels in Dublin recorded a slight decline in profit during the 12 months ending in August 2025, compared to the same period last year. GOP per Available Room (GOP PAR) decreased by 1.4%, due to a -1.0% drop in revenues while the cost declined by -0.8%.
• Rooms revenue saw only a marginal decline, with RevPAR dropping by 0.5%, driven by the decrease in ADR (-1.4%) while occupancy increased (+0.9%).
• Occupancy rates increased mainly in March and June, +9.6% and +2.0% respectively, while notable decreases were recorded in April (-7.8%), October (-5.4%), and May (-1.5%).
• F&B revenue fell to €115 PAR (-2.9%). In combination with the slightly higher occupancy levels, the F&B revenue per occupied room declined to €150 (-3,8%, POR).
• The decline in expenses was primarily driven by Other Expenses (-€3.1 PAR) and Payroll (-€1.5 PAR). Unfortunately, these savings were eroded by an increase in Cost of Sales (+€1.7 PAR) and Utilities (+€0.9 PAR).
• Over the past 12 months (YE August 2025), Dublin’s hotel supply grew by 1.2% (reflecting various opening dates), with five openings and one expansion, adding 624 rooms in total.
• The market reacted to the shortfall of revenue with efficient cost control, leading to a GOP flex of 50.2%. Nevertheless, the profit margin declined by 0.1pp, reaching 37.5%.

SUPPLY

• Over the last 12 months (YE August 2025), the Dublin hotel market recorded 5 hotel openings (+624 rooms), including 4 new hotels (+519 rooms) and the re-opening in May 2025 of Mercantile hotel (105 rooms), following a complete renovation that added 77 new rooms.
• Overall, the hotel supply in Dublin increased by +1.2%, compared to the same period last year (weighted by opening and closing dates).
• The majority of the new room supply was within the Upscale Class, representing 59%, followed by the Upper Midscale properties accounting for 39%.
• Two new branded hotels are set to open in the remainder of the year, including Moxy, in the heart of Dublin’ Docklands (180 rooms) and The Hoxton, on Exchequer Street (130 rooms).
• Furthermore, the Conrad Dublin is set for an extension that will increase its room count from 192 to 280 rooms, while The Shelbourne is to undergo a £43m (€50m) refurbishment. The year-long project includes upgrading almost all of its 226 bedrooms.

PAYROLL COSTS

Labour expenses fell by 1.2% to €127.3 PAR during YE August 2025. The F&B departments and OOD led the decrease in payroll, with declines of €2.4 PAR (-3.9%) and €1.7 PAR (+19.5%), respectively. In contrast, the Rooms department recorded an increase in the labour costs (€1.1 PAR, +3.3%).

OTHER EXPENSES (excl. Utilities)

Other expenses recorded a decrease of €3.1 PAR, reaching €58.7 PAR. The departments mostly contributing to this overall decrease were S&M (-€0.5 PAR) and F&B (-€0.5 PAR).

COST OF SALES

Total Cost of Sales increased by €1.7 PAR (+3.9%), primarily in the Rooms (+€1.5 PAR) department. Overall, the cost of sales reached 5.9% in Rooms Department and 25.2% in F&B department.

UTILITY COSTS

Utility costs increased by €0.9 PAR (+9.2%), driven by higher water (+€ 0.4 PAR) and electricity (+0.3 PAR) expenses.

The total revenue decline (-€4.1 PAR,-1.0%) caused by the Rooms (-1.3€,-0.5%) and F&B (-3.5, -2.9%), despite Other Operating Department growth (+€1.2, +14.7%).

Expenses increase, driven by a rise in Rooms (+€2.3 PAR, +3.5%) and Utilities (+€0.9, +9.2%) departments despite a decline in F&B (-€2.8, -2.9%).