THE AVERAGE price of a hotel room in Ireland fell below €100 last month and has remained at this level in January, according to the Hospitality Irelandhotel tracker index.
It found that the average cost of a double room dropped by more than 10 per cent from November to December, with the average room rate falling to €93.31.
The average rate for January rose slightly, to €94.71.
This is the first time the average room rate has fallen below €100 since June 2008, when the Hospitality Irelandtrade publication started compiling the figures.
It bases the index on the best available rate for a double room for two, without breakfast, as stated on the hotel’s website at the same time each month.
According to the index, the average room rate was €127.85 last August and slipped to €117.67 in September, €110.94 in October, and €104.82 in November.
The index includes hotels with one to five stars, but the fall in room rates was more pronounced in the five-star sector, with average room rates dropping just over 30 per cent since August, from €225.80 to €157.45.
At Fáilte Ireland’s 2009 review and 2010 outlook yesterday, its chief executive Shaun Quinn said about 30 hotels had left the industry last year, while about 16 opened.
There are now more than 900 registered hotels in the State and an estimated 60,100 approved hotel rooms this year, a reduction of about 400 rooms since last year.
A recent report by economic consultant Peter Bacon recommended that 15,000 hotel rooms be closed down.
Redmond O’Donoghue, Fáilte Ireland chairman, said the market would dictate the number of hotel rooms in the country.
“I just hope that the correction isn’t too dramatic and that we end up not being able to cater for an upturn when it comes,” Mr O’Donoghue added.
