Occupancy rates in Irish hotels fell last year, while forward room bookings for 2025 are €100m lower than they were at this stage 12 months ago.
Those are the some of the findings of a survey conducted this month by the Irish Hotels Federation (IHF) among 195 of its members.
In 2024, its says average national hotel-room occupancy reached 74%, down 2% on the previous year, while the occupancy rate in Dublin was the highest of anywhere in the country at 81%.
Increasing business costs, growing global economic, and political uncertainty are also chief among the concerns of hoteliers, according to the study.
“Exceptional increases in operating costs over the last three years have eroded profitability, particularly for smaller hotels with less than 100 rooms that are more reliant on food and beverage sales,” IHF President Michael Magner said.
“Last year was very difficult for many businesses within our sector due to what can only be described as relentless increases in the cost of doing business. This has been a persistent challenge for hotels and the wider hospitality industry since 2022 with no let-up in sight,” he said.
“The situation has been compounded by the decision to increase the rate of hospitality VAT, which has hit food service businesses particularly hard. It is therefore very welcome that the Government has committed to revisiting the VAT issue as part of the budgetary process,” he added.
The IHF also says bookings for this year from the domestic market and North America are holding up, but that its members are reporting a drop-off in bookings from the UK and continental Europe.
The organisation’s members are meeting today in Killarney for its annual conference.
Article Source – Rising business costs biggest challenge for 2025 – IHF – RTE
