Steady performance by Dublin hotels in Q1 2012
Deloitte, the leading business advisory firm, has released the Dublin hotel figures from STR Global for Q1 2012. The figures show that hotel performance in the capital for the first quarter of the year has improved on the same period last year across all performance indicators.
Occupancy levels were up 1.8% on the same period last year, the average daily rate (ADR) was up 4.8% and revenue per available room (RevPar) rose by 6.6%.
Occupancy levels in Dublin hotels for the first quarter stood at 61%. The ADR figure was €82.86 and the RevPar figure was €50.49.
Commenting on the Q1 2012 STR Global results, Kevin Sheehan, Partner in charge of Travel, Hospitality and Leisure Services at Deloitte, said:
“At this stage last year, we observed strong performance growth from the low base of 2010. For example occupancy levels were up almost 7% on the first quarter of 2010 and RevPar was up 11%. While hoteliers may be disappointed that they have not observed the same level of increases in 2012, the fact that performance is growing at a steady pace is to be very much welcomed. What’s more, recent figures released from the CSO show that overseas trips to Ireland decreased by 1.2% on the same period twelve months earlier. In light of this, it is encouraging that Dublin hotels have managed to not only maintain but grow performance.
“What is interesting to note is that the ADR being charged in the first quarter of 2012 is more than the ADR figure for the full year in 2011 (€82.86 versus €82.04). This indicates that hoteliers are striking the right balance in driving all performance metrics forward – the mix of increases in both occupancy and ADR are resulting in a significant increase in RevPar, up 7% from Q1 2011, which directly affects the bottom line.
“2012 has the potential to be another robust year for hotels in the capital and we know that the city has a number of exciting events and festivals which hoteliers can capitalise on. While trips from overseas visitors were down slightly in Q1, the outlook is more positive for Q2 and Q3. Indeed the CSO figures, although reflecting an overall decrease due to drops in US and European visitors, show that the strength of Sterling against the Euro has contributed to an increase in visitors from Great Britain of 2.1% in Q1. This is particularly encouraging in terms of building Dublin’s reputation as a good value weekend break destination. The extension of the 9% VAT rate should help in maintaining the value Dublin can offer as a destination. The city has also been voted ninth best destination in Europe at the recent TripAdvisor Travellers’ Choice Awards®, and also featured in the top 25 destinations globally. There are plenty of positive messages that the city can communicate in its marketing activities.
“The factors which hotel operators have little control over – consumer sentiment, cost of doing business, ongoing instability in the Eurozone and availability of funding – still prevail. It will also be of concern that the CSO figures show that trips by visitors from North America and Europe are down at the beginning of 2012. However, this challenging marketplace is now the norm, and it appears that many hoteliers are becoming more and more adept at positioning their offerings to ensure performance remains strong. That said, they cannot afford to take their eye off the ball – the fluctuations in demand need to be considered by Dublin hoteliers so they can be sure that their offering is the right one targeted at the right customer.”
Source: STR Global
Percentages are increases/decreases for the same time period in the previous year.
Notes to editors:
All analysis in local currency.
Dublin Q1 2012 data is based on monthly and daily results for the months January – March 2012.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/ie/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
The information contained in this press release is correct at the time of going to press.
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