
Hospitality Insight
Ireland Hospitality, Tourism & Leisure Market Update
May 2025
Welcome to the latest edition of Crowe / Horwath HTL Ireland Hospitality, Tourism & Leisure (HTL) market update, where we take a look at the wider tourism sector and provide hotel commentary, sectoral updates and noteworthy news.
In this edition, we share a selection of our key industry developments and insights, including Ireland’s hotel performance, transactions, tourism trends, and the latest updates on hotel supply.
The Irish hotel sector began 2025 with mixed signals across performance, investment, and regulatory landscapes. National occupancy in Q1 increased by 1.4 percentage points to 68%, though ADR fell by 1.4%, yielding a slight 0.7% RevPAR increase. Notably, Dublin saw a RevPAR uptick of 1.4% year-on-year despite a minor ADR decline. Regional performance varied—Galway showed the strongest growth in occupancy and RevPAR, while Cork declined due to new supply.
Hotel transactions in Q1 totalled over €230 million, with Dublin comprising 85% of deal volume. Key deals included Deka Immobilien’s €86m acquisition of Ruby Molly and FBD Hotels’ €55m purchase of the Grand Hotel in Malahide. Several new developments were approved or underway, including the reopening of The Mercantile Hotel and expansion of the Paramount Hotel. Investor confidence remains robust, with further pipeline activity expected.
Tourism faced headwinds as Q1 inbound figures from the CSO indicated a sharp drop—foreign visitors declined 22.9% year-on-year. However, industry stakeholders disputed these figures, citing strong hotel bookings. Domestic travel continued to bolster the market. Air capacity is forecasted to grow 2% overall in 2025, with a 6.5% increase in summer supply; sea access is expected to decline.
Legislatively, the Government proposed the Short Term Letting and Tourism (STLT) Bill to regulate short-term rentals, including mandatory registration and new penalties. Additionally, a proposed hotel room tax by Dublin’s councils is under industry scrutiny.
At recent industry events, sustainability and digital transformation dominated discussions. Approximately 77% of hoteliers plan increased investment in refurbishments, sustainability, and AI adoption.