Dublin Hotels Near Full as Occupancy Hits 84.7%
Dublin hotel occupancy reached 84.7% in the year to September 2026, slightly ahead of the same period last year, according to CoStar. This is despite the headwinds facing global travel, particularly at the start of the year. Average daily room rates increased by 1.3% to €177.79, while revenue per available room rose by 1.5% to €150.50.
This is a strong level for a market running at such high occupancy; however, the growth has not kept pace with CPI inflation in Ireland of 3.3% over the same timeframe. The fact that occupancy has held at such a level despite these pressures is evidence of the market’s underlying resilience.
Irish climate
Ireland’s mild climate may be an emerging draw. As extreme heat becomes more common across Southern Europe in July and August, more visitors are looking for comfortable summer conditions. Speakers at the recent ITIC conference highlighted the growing appeal of an Irish summer to American travelers as a further support for tourism demand.
Dublin’s growing calendar of international sporting events could provide an increasing boost to hotel demand, particularly outside the traditional summer peak.
Future events in Dublin
The success of major US sporting events in Ireland has demonstrated their ability to attract international visitors, while the 2027 Ryder Cup is expected to provide a further significant tourism boost.
The US ambassador to Ireland Ed Walsh at the ITIC conference pointed to the potential for further events such as a college basketball game to extend the event calendar into the quieter winter months.
€1.4bn Dalata Deal Highlights Investor Demand for Irish Hotels Pandox’s acquisition of Dalata pushed rolling 12-month investment to approximately €1.4 billion.
Excluding that transaction, 2026 has been a year of smaller, more targeted deals. Dublin Airport hotels stood out, accounting for the two largest transactions of the year so far, as buyers looked to the steady demand that comes with being close to a major travel hub. Activity also spread well beyond the capital, with deals completing in Meath, Donegal and Kerry.
Buyers remain a familiar mix of established hotel groups, family operators and private investors. The year could still finish strongly: several major Dublin hotels, including the Conrad and the Morrison, are currently on the market, and if they sell before year end, 2026 volumes will rise significantly.
Dublin to Welcome First New Five-Star Hotel Since 2013 Dublin is set to welcome its first new five-star hotel since 2013 when the Sofitel at Dublin Airport opens in 2027.
The hotel will be a notable addition to a development pipeline otherwise weighted towards more functional forms of accommodation. Aparthotels are also gaining traction, accounting for 15% of new supply due to be delivered by 2028.
Dublin’s hotel stock is on track to pass 30,000 rooms for the first time by 2028, backed by a development pipeline worth an estimated €0.9bn to €1.2bn. Budget and midscale hotels account for a significant share of this, reflecting continued demand for efficient, well-located accommodation in the capital.
Colin Richardson, head of research & consultancy at CBRE Ireland, commented: “Adding more than 3,500 rooms to a market this full should bring some normalisation of trading levels. The events pipeline, record passenger numbers through Dublin Airport, and Fáilte Ireland’s sharp focus on growing visitor numbers all point in the right direction”.
