The supply of aparthotels in Dublin will grow by 96% during 2022, according to property advisor, Savills Ireland. At the beginning of 2022, aparthotels represented only 3.8% of Dublin’s total hotel stock in comparison with 8.1% and 9.5% in London and Manchester respectively.
Two Staycity aparthotels have opened so far in 2022, and aparthotel supply is forecast to increase by a further 40%, based on what is currently under construction, including the 340-unit Staycity scheme on Little Mary Street, Dublin 7. Homegrown brand Staycity, now one of the biggest operators in Europe, started out in Dublin in 2004. Since then, the market has grown substantially, with multiple brands expanding their presence across the city – including the addition of 401 units across two sites in the last 12 months by Locke Living.
Tom Barrett, Director of Hotels & Leisure at Savills Ireland commented: “Some commentators question whether the city can absorb this level of expansion? Savills forecast some very short-term challenges at a city level, considering most of the aparthotel pipeline will be delivered in 2022 when demand from international travellers is in the recovery phase post-covid-19. However, with corporates such as TikTok, 2K Games and JustEat establishing new headquarters in Dublin alongside existing large occupiers like Facebook, corporate demand for longer-stay accommodation is predicted to be buoyant. This demand is likely to be exacerbated by the very tight housing market in the city and increasing restrictions on Airbnb. While the level of supply growth is considerable, the drivers of demand suggest that operational performance over the medium to long term will be strong.”
