Hospitality, Tourism & Leisure Market Update
September 2025
Welcome to the latest edition of Crowe's Hospitality, Tourism & Leisure market update, where we take a look at the wider tourism sector and provide hotel commentary, sectoral updates and noteworthy news.
In this edition (pdf), 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. We regularly publish insights which you may find of interest, and you can find them on our website or follow us on LinkedIn.
Key insights in this update
Hotel occupancy edges up nationally as ADR drives RevPAR growth
Preliminary data for the first eight months of 2025 shows a slight year-on-year rise in national hotel occupancy, reaching 80.7%. ADR increased by 3.9% to €150, lifting RevPAR by 4.5% to €121. Despite the occupancy gain, inbound tourism continues to decline, according to the Central Statistics Office. Domestic travel remains a key support for the local market.
Concerts and sport boost Dublin hotel demand despite rate dip
Year-to-date occupancy to August 2025 rose by 1.3 percentage points to 83.5%. ADR dipped by 1.0% to €175, resulting in a modest RevPAR increase of 0.5% year-on-year to €146. Major concerts and sporting events including the Oasis reunion shows, All-Ireland GAA finals and Aer Lingus College Football Classic drove strong weekend demand and boosted hotel performance across the capital.
Regional ADR gains offset modest occupancy declines
Cork, Galway and Limerick each saw modest occupancy drops in the first eight months of 2025, but rate increases helped offset declines. Strong domestic demand and steady event calendars supported performance across all three cities. Year-on-year occupancy dipped by an average of 0.4%, with ADR rising by 3.8%, resulting in RevPAR growth of 3.2%.
Major hotel transactions signal investor confidence
The Irish hotel sector saw significant deal activity this year, led by the €1.4 billion acquisition of Dalata Hotel Group by Scandinavian investors. An additional €340 million worth of Irish hotel sales were reported in the first half of 2025. Notable international transactions include Brookfield’s €776 million purchase of Generator Hostels and Marriott’s acquisition of citizenM. These deals highlight strong investor appetite and confidence in the hospitality market.
Hotel pipeline: New openings and growth ahead
Dublin’s hotel market continues to expand, with over 5,000 new bedrooms forecast by 2029, a 19% increase in supply. Recent highlights include the opening of citizenM Dublin St Patrick’s and the revamped Mercantile Hotel. New developments in Cork, Galway and Belfast are also supporting growth, ensuring Ireland’s hospitality sector remains vibrant and competitive.
Hospitality news: Sector developments and policy updates
The Irish Government has purchased the Citywest Hotel for €148 million to provide accommodation for migrants. Meanwhile, a potential VAT reduction for hospitality is under review in Budget 2026, while Dublin Airport have been issued an enforcement notice over breaching their passenger cap. These developments reflect the sector’s ongoing evolution and the importance of policy in shaping the market.
