Confident Hoteliers Gather in Killarney
Hoteliers who gathered at INEC in Killarney for the Irish Hotels Federation’s 87th Annual Conference are broadly confident about the immediate future but are concerned about increasing business costs, lower occupancy levels and growing global economic and political uncertainty.
IHF President Michael Magner, however, called for a “strong focus on value-enhancing investment”, which he said is “absolutely essential for the further development of Ireland’s tourism and hospitality product”.
Recent industry research carried out by the IHF shows that forward bookings for hotels in 2025 are down €100m so far compared with the same time last year. Findings also show that business sentiment has dipped for the second year in a row, with a little over a third (37%) indicating a positive outlook for trading conditions for the year ahead.
In 2024, the average national hotel room occupancy stood at 74% for the year as a whole, down 2% on the previous year when an occupancy rate of 76% was achieved. With most regions seeing a drop in occupancy levels, a significant disparity continues to exist across the regions, ranging from 70% occupancy in the border region to 81% in Dublin.
Business sentiment among hoteliers for the year ahead is down for a second year running with 37% of hoteliers reporting a positive outlook for trading conditions over the next 12 months. This contrasts with 47% who reported a positive outlook this time last year and 74% the previous year.
This is reflected in forward bookings, which are pacing behind 2024. Compared to the same time last year, hoteliers are reporting a further drop of 2% in business levels on the books for 2025, equivalent to €100m in bookings. While results indicate that the domestic market and North America are holding up so far, hoteliers are reporting a net drop in bookings from Great Britain, Northern Ireland and the rest of Europe.
Commenting on the outlook for the sector, IHF President Michael Magner highlighted the exceptional increases in operating costs over the last three years which have eroded profitability, particularly for smaller hotels with less than 100 rooms that are more reliant on food and beverage sales.
While hoteliers continue to rank rising costs as the most serious challenge facing their business, the wider economic environment in which hotels operate is also a growing concern. Some 94% of hoteliers say they are worried about the global economy and the potential impact of political uncertainty in key markets. Closer to home, some 78% of hoteliers say they are concerned about the outlook for the Irish economy over the next twelve months with consumer finances remaining under considerable pressure and international developments posing risks to the Irish economy.
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