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Dublin hotel prices rise 7 per cent despite drop in occupancy

But Hotstats says that a "significant" fleet of new hotel openings may drive down prices

Pictured: an artist's impression of the 202-bedroom Aloft Dublin City, due to break ground early this year

Dublin hotel prices have risen 7 per cent to hit to a room average of €145 (£123) despite a 4 per cent drop in occupancy, but prices could be driven down by a 'signficant' number of hotel openings.

In the latest European Chain Hotels market review, Hotstats found that year on year average room rates (ARR) went from to €136 (£115) to €145 (£123) for the month of February, while occupancy fell 77 per cent to 74 per cent.

But report authors warn that a "significant" fleet of new hotel arrivals is expected to drive prices as they create more competition.

"Hotels in Dublin will have their work cut out to maintain top line performance, as the number of forthcoming additions to supply is significant, including 18 projects over the next three years comprising 1,610 bedrooms, the most notable of which are the 202-bedroom Aloft Dublin City and 178-bedroom Clayton Hotel Charlemont," the report said.

It was more grim news for Istanbul hoteliers, as prices dropped another 6 per cent while occupancy fell below 40 per cent.

Hotel prices for the month of February averaged €77 (£65) per room, with occupancy at 39.7 per cent. It compares to an average room rate (ARR) of €82 the previous year, when occupancy was at 44 per cent.

The authors added: "The commercial segment has been the hardest hit in recent years, with the residential conference and corporate segments comprising 39 per cent of accommodated room nights in the 12 months to February 2017, which is well down from 51.7 per cent in the 12 months to February 2014. For the average hotel polled in our sample for Istanbul, the decline is equivalent to a drop of approximately 15,000 accommodated commercial-related room nights per annum over the last 36 months."

Meanwhile, Frankfurt hotel prices remained stable, averaging €158 in February 2017, from €159 (£135) the previous year, and with occupancy flatlining at 74 per cent.

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