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Dublin’s hotel sector has remained robust through the year to September 2026, with occupancy holding at 84.7% despite broader global travel headwinds. Data from CoStar and analysis by CBRE show modest gains in room rates and revenue, while rising visitor events and airport traffic are reshaping demand patterns.
Market performance at a glance
Average daily room rates climbed by 1.3% to €177.79, and revenue per available room rose 1.5% to €150.50. These figures accompany an overall occupancy rate of 84.7%, a strong showing for a market already running near capacity.
Dublin hotels record 84.7% occupancy, edging towards full capacity
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However, price growth has lagged behind inflation: consumer prices in Ireland increased by about 3.3% over the same period, reducing real gains for operators.
Why demand has held up
CBRE says the steady occupancy level points to the sector’s underlying resilience. International leisure traffic, particularly from the United States, has been a key driver.
Peak-month US overnight visits to Ireland have risen roughly 20% since 2023, from around 150,000 to an estimated 175,000–180,000. Analysts suggest Ireland’s milder summer climate may be attracting visitors who are avoiding extreme heat elsewhere in Southern Europe.
Sporting events and the calendar effect
Major US sporting fixtures staged in Ireland have already shown their power to draw overseas guests, and the 2027 Ryder Cup is expected to add a significant uplift to tourism.
At the ITIC conference, US ambassador Ed Walsh noted the potential for other events — such as a college basketball game — to stretch visitor demand into quieter winter months, helping to smooth seasonal peaks.
Investment activity and transactions
CBRE highlighted that Pandox’s purchase of Dalata pushed rolling 12-month hotel investment to about €1.4 billion. Without that single large deal, 2026 has been characterized by smaller, more selective transactions.
The two biggest sales of the year so far involved hotels near Dublin Airport, underlining buyer interest in properties with reliable, airport-driven demand.
Beyond the capital
Hotel deals have not been confined to Dublin. Transactions completed in counties Meath, Donegal and Kerry, with purchasers including established chains, family-run operators and private investors.
Several high-profile Dublin assets — including the Conrad and the Morrison — remain on the market. CBRE says sales of those properties before year end would materially raise 2026 investment volumes.
Development pipeline and outlook
Dublin is due to welcome its first new five-star hotel since 2013 when the Sofitel at Dublin Airport opens in 2027. The pipeline otherwise favors more practical accommodation, with aparthotels accounting for about 15% of new supply scheduled by 2028.
Overall hotel stock in the city is on course to exceed 30,000 rooms by 2028, supported by a development pipeline valued between an estimated €0.9 billion and €1.2 billion. Budget and midscale projects make up a significant share.
“Adding more than 3,500 rooms to a market this full should bring some normalisation of trading levels,” said Colin Richardson, head of research & consultancy at CBRE Ireland. He added that the events calendar, record passenger throughput at Dublin Airport and Fáilte Ireland’s focus on growing visitor numbers all point in a positive direction.
