Tourist Accommodation in Cork, Galway & Kilkenny

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1 FUTURE SUPPLY OF: Tourist Accommodation in Cork, Galway & Kilkenny Research MARKET OVERVIEW Nationally tourism is growing year on year. 217 saw 3% growth in overseas tourists, and Fáilte Ireland predicts 7% growth in and 4% in 219. Tourists Includes an Overnight Stay Main Purpose of Visit While more trips originate in Great Britain than in any other single market, the US has surpassed GB as the market generating the largest revenue for Ireland. Combined with France and Germany, these four markets account for seven in ten (68%) of Ireland s overseas tourists. Holiday Visiting Friends & Relatives Business Other GROWTH TRAJECTORY Recent data demonstrates strong tourism demand at a national level. If this sustained growth continues tourist numbers will be up more than 2% over the next five years, which will put pressure on current accommodation stock levels. Urban areas historically perform above average, amplifying any accommodation squeeze. IRELAND OVERSEAS TOURISTS TO IRELAND 212- () OVERSEAS AND DOMESTIC TOURISTS TO CORK, GALWAY & KILKENNY COUNTIES 217 () +1% 6,286 +6% 6,686 +6% 7,15 +13% 8,36 +9% 8,742 +3% 9,22 +7% 9,64(e) 1,113 1,24 1,65 1,673 Domestic Tourists Overseas Tourists CORK Total Tourists 2,718 GALWAY Total Tourists 2,697 KILKENNY Total Tourists 613 * Tourist numbers are not available at a city level. Overseas tourist figures are based on 3 year rolling county averages and therefore year on year comparison is not available Sources: CSO I Fáilte Ireland I NISRA 217

2 TOURIST REVENUE TO CORK, GALWAY & KILKENNY 217 ( MN) 76% Overseas 7% Overseas 59% Overseas STOCK 833m 836m 94m FÁILTE IRELAND REGISTERED ACCOMMODATION STOCK BY CITY (JUNE ) The number of Fáilte Ireland registered bedspaces reflects the size of the tourism accommodation sector across the three cities. In all three, hotels dominate tourist accommodation, accounting for nearly four out of every five bedspaces. PREMISES PREMISES PREMISES , , , , , TOTAL 31 6, , ,598 SHARE OF TOTAL HOTELS 79% 82% 83% GUEST HOUSES AND B&Bs SELF CATERING PREMISES PREMISES IRISH WELCOME STANDARD PREMISES CARAVAN & CAMPING PREMISES YOUTH & HOLIDAY HOSTELS PREMISES Outside of Fáilte Ireland registered accommodation Cork and Galway have additional seasonal stock with the addition of a significant amount of student accommodation between June and September. TOTAL PREMISES PREMISES PREMISES 79 8, , ,127 Source: Fáilte Ireland

3 HOTEL MARKET Tourism in all three cities has grown steadily over the last five years. Occupancy rates are at an all time high. HOTEL PERFORMANCE FOR CORK, GALWAY AND KILKENNY YEAR TO SEPTEMBER * OCCUPANCY 82% 8% 78% AVERAGE ROOM RATE ** REVPAR (Revenue Per Available Room) ** REVPAR GROWTH % +64% NA *Data for Kilkenny hotels is not as readily available, however feedback from hoteliers and some limited data from STR suggest a similar pattern to Cork and Galway. ** Kilkenny room rate data is year to date to August. NEW HOTEL ACCOMMODATION SUPPLY The following new supply is forecast. HOTEL ACCOMMODATION PROJECTS WITH PLANNING PLANNING 214- NEW HOTELS 7 7 HOTEL EXTENSIONS NO. OF HOTEL ROOMS 1, OTHER (eg., Guesthouses/Hostels) *Camping Pods * HOTEL ACCOMMODATION PROJECTS IN PRE-PLANNING HOTELS PROJECTED HOTEL ROOMS IF PLANNING IS GRANTED Not all of these projects, even those that have gone through planning, will come to fruition. The following projections are made for room stock to the end of 222, and take into account rooms that may not progress (for differing reasons). Source: trending.ie STR Fitzpatricks Associates

4 Research PROJECTED HOTEL ROOMS TOTAL 934 CORK TOTAL 49 GALWAY TOTAL 41 KILKENNY CORK HOTEL ACCOMMODATION PROJECTS WITH PLANNING CORK CITY (NOVEMBER ) IN CONSTRUCTION The Windsor Inn Kingsley PLANNING GRANTED M Harley Street Montenotte Horgan s Quay Metropole Imperial Maldron, South Mall Clancy s Bar, Princes St Boatel, Penrose Quay Parnell Place Sullivan s Quay IN PLANNING SYSTEM Wilton Shopping Centre Travelodge, Kinsale Road It is anticipated that new rooms will be predominantly in 4-star hotels (72%). Of the remainder, some 11% of rooms are anticipated to be in 3-star hotels, with 18% in budget hotels T wo of the three hotels currently on-site are expected to be completed before the end of, adding 17 rooms to the stock, and the first major addition in five years Almost 1,8 additional bedspaces in student accommodation that are also on-site in and around Cork city, and a further 5 are going through the planning process Sources: Cork City Council 222

5 GALWAY HOTEL ACCOMMODATION PROJECTS WITH PLANNING GALWAY CITY (NOVEMBER ) IN CONSTRUCTION PLANNING GRANTED IN PLANNING SYSTEM Glen Oaks Glenlo Abbey Connacht Laundry, Henry Street O Reilly s Bar & Kitchen, Upper Salthill 8 Prospect Hill Western, Prospect Hill Nuns Island Canavan House Maldron, Headford Rd Meyrick Carroll s Inns, Dominick St Menlo Park Park House Travelodge, Tuam Road Doughiska Road An additional 35 rooms across ten different hotel projects to be added to Galway s stock by end 22 this represents net addition of 29 (considering the redevelopment of the Westwood hotel (58 rooms) into 394-bed student accommodation) The bulk of additional rooms (77%) are expected to be in 4-star hotels, with another 4% in 5-star hotels, 4% in 3-star hotels and 15% in 2-star or budget hotels KILKENNY HOTEL ACCOMMODATION PROJECTS WITH PLANNING KILKENNY CITY (NOVEMBER ) Evidence from planning permissions, press releases and other media reports suggest that there has been considerable investment in Kilkenny hotels in the last year, but almost all of this has been in food and beverage facilities or in refurbishing existing bedroom stock. Pembroke Sources: Galway City Council Kilkenny City Council Fitzpatrick Associates

6 ACCOMMODATION SUPPLY/ DEMAND OUTLOOK The adequacy of the accommodation supply for future growth is considered against future demand, i.e. annual visitors to Cork, Galway and Kilkenny and the bednights they require. In the context of demand growth expectations PROJECTED HOTEL ROOMS IN CORK, GALWAY AND KILKENNY BY END % PROJECTION OF NEW ROOMS % GROWTH IN ROOM STOCK For 219, 4% growth in overseas tourist numbers and 2.% growth domestically is projected For 22-22, 3.5% growth in overseas numbers and 2.% growth domestically is projected Allowing for the strong growth experienced in and the forecast that overseas tourist numbers will grow at an annual average rate of 3.5% per annum out to 222, then overseas demand will be up more than 2% over the next five years % While these reflect national projections, experience shows that urban tourism grows at a faster rate given the choice and supply of tourist related accommodation and experiences. 49 4% 41 Given that hotel occupancy rates are at an all-time high 35% projected hotel room growth positions Cork well to take full advantage of all future growth opportunities There are clear opportunities for Galway to further unlock growth with additional room supply There are significant opportunities in Kilkenny for additional bed capacity to accommodate future growth For more go to: ie/research Source: Fitzpatricks Associates