Hospitality, Tourism & Leisure Market Update

Welcome to the latest edition of Crowe's Hospitality, Tourism & Leisure Market Update, where we review Ireland’s hotel sector performance and consider emerging trends shaping the tourism and hospitality sector.

In this edition, we provide an overview of hotel performance, transaction activity, inbound tourism trends, and hotel pipeline developments. We regularly publish insights which you may find of interest, and you can find them on our our website or follow us on LinkedIn.

Key insights in this update 

Irish hotel sector remains resilient despite softer inbound tourism
The Irish hotel market showed continued resilience in 2025, with Dublin occupancy reaching 84% and regional Ireland recording 72%. ADR stood at €174 in Dublin and €168 regionally, resulting in RevPAR of €146 and €121 respectively. Inbound tourism declined by 3% during the year, while day-to-day spending by overnight visitors from abroad fell by 8.5%. Strong domestic travel demand continued to support the sector. 

Dublin performance supported by strong demand and major events 
Dublin occupancy increased by 1.9% year-on-year to 84%, with RevPAR rising to €146. In the city centre, occupancy reached 83% and ADR increased to €197, driving RevPAR to €163. The market benefited from a strong summer, supported by major concerts and sporting events, including the Aer Lingus College Football Classic and All-Ireland finals. 

Regional markets deliver steady performance with rate growth
Regional cities recorded stable performance in 2025. Cork maintained occupancy at 75%, with ADR increasing by 3.8% to €163 and RevPAR rising by 5% to €123. Galway saw occupancy reach 75%, with ADR up 3.9% to €186 and RevPAR increasing by 4.5% to €139. Limerick recorded occupancy of 80%, with ADR rising 3.8% to €191, resulting in RevPAR growth of 3.4% to €153. 

Strong transaction activity reflects continued investor demand
The Irish hotel market recorded €1.7 billion in transactions in 2025, led by the €1.4 billion sale of the Dalata Group. A further 66 hotels changed hands during the year, with activity across both Dublin and regional markets highlighting continued investor interest. 

Inbound tourism declines slightly while overall spend remains significant
Ireland welcomed just over 6.4 million overseas visitors in 2025, a 3% decline compared to 2024. Visitors spent 47.9 million nights in the country, with an average stay of 7.5 nights. Total expenditure reached €5.5 billion, around 9% lower than the previous year, with €2.29 billion spent on accommodation.    

Outlook for 2026 shows cautious optimism across the sector
The sector enters 2026 with a mix of optimism and caution, with 92% of hoteliers concerned about global conditions and 76% about the domestic outlook. However, 51% expect trading to improve, supported by forward bookings. Investment remains a focus, with three-quarters of hotels planning capital expenditure, particularly across guestrooms, food and beverage, and public areas, alongside sustainability initiatives. 

Hotel pipeline activity continues across Dublin
Dublin’s hotel pipeline remains active, with several projects progressing through planning and approval stages. These include city centre expansions, new hotel developments and large-scale projects, reflecting steady development activity in the market.

Hospitality sector developments and investment trends
Dublin City Council is examining the introduction of a tourist accommodation levy, although no tax has been approved. At a European level, hotel investment reached €22.6 billion in 2025, its highest level since 2019, highlighting continued investor appetite for hospitality assets.

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