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Dublin hotels experienced exceptionally high demand over the past year, recording nights with very limited room availability far more often than other European capitals. New research from Savills highlights a mix of business travel, tourism and events that has kept occupancy rates well above the continental average and is shifting investor attention beyond the capital.
Dublin’s unusually high number of “compression nights”
Savills’ analysis found Dublin logged 146 nights when occupancy topped 90% — industry figures describe these as “compression nights”, when very few rooms remain available. That total represents roughly 40% of the year, a share higher than any other major European city included in the study.
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The research also shows Dublin’s annual hotel occupancy reached 84.1%, compared with a European average of 71.7%. That places the city ahead of gateway destinations such as Barcelona, Amsterdam, Milan, Rome and Vienna.
Multiple demand drivers, and why they matter
Tom Barrett, director of hotels and leisure at Savills Ireland, said the market’s strength is not coming from a single source. He pointed to a broad mix of contributors — corporate travel, international tourists, major concerts and sporting events, and attractions such as the Wild Atlantic Way — that together support sustained demand.
That variety matters because it creates resilience. When different types of visitors keep arriving throughout the year, hotels can sustain higher occupancy and maintain stronger room rates than markets that rely on a single season or event.
Beyond Dublin: regional prospects and the role of the US market
While Dublin remains the busiest, Savills finds Ireland’s hospitality performance is nationwide. International tourism, steady corporate bookings, and an expanding calendar of headline events are driving interest in regional destinations as well as the capital.
The report highlights the significance of the US market: American travellers make up about one fifth of overseas visitors to Ireland but account for roughly 41% of international tourism spending. That higher spending profile supports premium and luxury accommodation and helps sustain demand across the year.
Savills also notes Ireland has absorbed a notable volume of new hotel supply without seeing occupancy fall, with Dublin continuing to rank among Europe’s most occupied cities despite an active development pipeline.
Investment opportunities in regional hospitality
Barrett argues the next phase of growth will be outside Dublin. International guests increasingly seek authentic, experience-led trips focused on heritage, food, golf, wellness and nature. In many parts of Ireland, he says, the stock of high-quality luxury properties has not kept pace with that demand.
That gap, according to Barrett, points to attractive opportunities for investors and developers. Distinctive regional hotels that can offer unique experiences are likely to capture increasing interest from overseas visitors.
For the Irish tourism sector and investors, the Savills findings underline two linked trends: Dublin’s unusually high occupancy and a growing case for premium regional development driven by diverse, year-round demand.
