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Dublin and Barcelona are 'best performing' hotel markets

Hotstats' 10-year report says lack of openings driving up room rates while Vienna, Prague prices are sliding
30/05/2017

Pictured: Dublin has been named one of the best hotel markets in Europe, with average room rates rising 45 per cent

Limited hotel openings and continuous rises in occupancy has seen Dublin and Barcelona named Europe's best performing hotel markets in Hotstats' special 10 year report.


The report also names Vienna and Prague as some of the hardest hit markets, while Paris has been particularly highlighted for the terror-related slump experienced in the past 18 months.


Average room rates in Dublin have increased 44.7 per cent since 2009, fuelled by a 23.8 per cent increase in occupancy, while in Barcelona a 150 per cent increase in visitor numbers - which prompted a moratorium on hotel development in January, to control visitor numbers - has seen hotel profits grow 88 per cent.


The report said: "Dublin and Barcelona have emerged as the top performing hotel markets across Europe over the last 10 years. As well as their growing popularity as visitor destinations, limited additions to supply have helped hoteliers fight back from hitting rock bottom to record profit increases of as much as 220 per cent since 2009."


Meanwhile, Vienna and Prague have been listed as two of the worst performing cities, which spell value for money as average room rates have stayed below the 2007 average.


Vienna's achieved rate in the corporate sector (€150.82) remains 17.9 per cent below the 2007 segment rate (€183.61), with authors pointing out the Austrian capital was hit hard by the global recession.


The achieved daily rate at hotels in Prague today (€97.84) is still 15.2 per cent below 2007 levels (€115.89). The authors added: "Prague was arguably a victim of its own success, as visitor numbers swelled by more than 70 per cent in the period from 2000 to 2007, to approximately 4.5 million and with this growth came an appetite for investment in new hotel stock. The resulting development bubble and lag time to completion, meant that in 2008 alone more than 3,640 bedrooms entered the market as the recession hit and visitor numbers went backwards."


Paris has seen a 5 per cent fall in average room rate since the terrorist attacks in November 2015, averaging €315.89, but authors say the real challenge for hoteliers has been in trying to maintain volume, with room occupancy dropping by eight percentage points year-on-year, to 67.2 per cent.


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