Dublin’s hotel occupancy reached 84.1%, well above the European average of 71.7%
Dublin hotels were effectively full for four in every ten nights over the past year, helping cement Ireland’s position as one of Europe’s strongest-performing hotel markets, according to new research from Savills.
Capital records 146 “compression nights
The research found Dublin recorded 146 nights where hotel occupancy exceeded 90% – known in the hotel industry as compression nights because demand leaves very little bedroom capacity available. Representing 40% of the year, Dublin recorded significantly more of these high-demand nights than every other major European city, underlining the strength of both business and leisure travel to the capital.
The report also found Dublin’s hotel occupancy reached 84.1%, well above the European average of 71.7% and ahead of major gateway cities including Barcelona, Amsterdam, Milan, Rome and Vienna.
Ireland’s hotel market strength now extends beyond Dublin
While Dublin continues to lead the way, the report concludes that Ireland’s success extends far beyond the capital. Strong international tourism, resilient corporate demand, a growing calendar of major sporting fixtures and concerts, and increasing interest in regional leisure destinations have combined to make Ireland one of Europe’s standout hospitality markets.
According to Savills, Ireland is no longer simply benefiting from a post-pandemic recovery but is outperforming many competing European destinations on the strength of long-term demand fundamentals.
Tom Barrett, Director of Hotels & Leisure at Savills Ireland, said:
“What makes Ireland’s performance particularly impressive is that it isn’t driven by a single factor. Strong business travel, international tourism, major concerts & sporting events and the Wild Atlantic Way all play an important role, but equally important is the depth and diversity of demand across the market. That gives Ireland a level of resilience that relatively few European hotel markets can match.”
The report also highlights the continued importance of the US market, with American visitors accounting for around one-fifth of overseas visitors to Ireland while generating 41% of international tourism expenditure. This high-spending visitor base continues to support premium room rates, luxury accommodation and year-round demand.
According to Savills, Ireland has also demonstrated a remarkable ability to absorb new hotel supply while maintaining exceptionally strong occupancy levels. Despite a healthy development pipeline, Dublin continues to record some of Europe’s highest occupancy rates, reflecting sustained demand.
Barrett said this strength was also creating opportunities beyond Dublin.
“The next chapter of Ireland’s hotel story is likely to be regional. International visitors increasingly want authentic experiences centred around heritage, food, golf, wellness and the natural environment. Demand for those experiences already exists, but in many parts of the country the supply of high-quality luxury accommodation hasn’t kept pace.”
“That presents a compelling opportunity for investment in distinctive regional hotels that can capitalise on Ireland’s growing international appeal. The strongest opportunities are no longer confined to Dublin; they’re increasingly found in locations that can offer something unique.”
