Ireland hotels see strong financial results

Ireland hotels see strong financial results - ireland hotels — Dublin held steady occupancy rates at 82% during the initial six months of the year.

Through the first half of 2026, Ireland’s hotels demonstrated strong financial results amid rising challenges, as Bank of Ireland’s Hospitality Sector H1 2026 Insights and H2 2026 Outlook reveals. Revenue expansion has stemmed almost entirely from higher room prices rather than increased guest numbers, despite broader economic and supply shifts.

Gerardo Larios Rizo, who leads the Hospitality Sector at Bank of Ireland, states that average daily room rates (ADR) continue to be the main factor behind revenue per available room (RevPAR) expansion in most markets. Dublin held steady occupancy rates at 82% during the initial six months of the year.

Regional locations like Limerick, Kilkenny, and Galway posted some of the most significant RevPAR gains. Limerick topped the list with a year-on-year RevPAR increase of 9.4%, followed by Kilkenny at 7.8% and Galway at 6.9%.

Inbound tourism has provided another welcome boost, with trips to Ireland increasing by 18% in the five months to May 2026. European visits rose 24%, and North American visitor numbers increased by 15%.

North American visitors continue to be a key market for Irish hospitality firms because they spend considerably more. Bank of Ireland’s research indicates that average spending by tourists from the USA and Canada hit €1,219 over that time frame.

A significant shift in accommodation supply is also underway, as tourism bed stock previously contracted by the State gradually returns to the market. Fáilte Ireland data shows that registered tourism accommodation under Beneficiaries of Temporary Protection and International Protection contracts has fallen from 13% of national tourism bed stock in summer 2023 to 3.7% in May 2026.

The outlook for the rest of 2026 is upbeat, especially in Dublin, where occupancy is predicted to stay stable at 83.8%, with RevPAR anticipated to climb 1.1% for the entire year. Bank of Ireland’s base case scenario suggests low-to-mid single-digit RevPAR growth in the latter half of the year, mostly driven by room rate hikes.

However, the report points to consumer confidence, higher airfares, geopolitical uncertainty, and ongoing operating cost pressures as critical issues for operators to watch closely. Larios Rizo notes that the industry’s attention must now move from increasing volume to boosting profitability.

Local demand continues to be a key support for the industry, particularly in regional areas and during shoulder seasons. Irish consumers still back local tourism businesses, though operators are seeing shorter booking periods and more last-minute reservations.