Over 600 new hotel rooms planned for Galway from 2020

According to the figures from Trending.ie, Galway hotel occupancy was almost 75% last year.

Over the three year period from 2013 to 2016, average room rates grew from €72 to €95.

During the peak summer period this year, Galway hotels had a vacancy rate of just 5%.

The demand for meant that Galway hotels outperformed Cork this summer.

In terms of individual hotel transactions, Galway saw fewer than other cities in Ireland.

There are a number of indicators that demand for properties in Galway city is on the increase including the recent sale of the 261 bedroom Radisson Blu Hotel and the examinership process of the G-Hotel and Meyrick.

The Park House is currently undergoing an extension which will see 15 rooms added in an adjacent block in early 2018.

At the moment, 10 hotels are in various stages of the planning process with new builds and extensions on the way.

Of the six hotels planning extensions, just the Maldron Hotel Sandy Road is awaiting planning permission.

While the Market Street hotel is awaiting permission for its new build.

Market Street is planning the largest project of the ten currently in the pipeline with 200 new rooms planned.

There are 3,218 rooms in Galway City and if all of the proposed projects go ahead the hotel bedroom supply will increase by 20%.

Savills do not believe that all ten proposed projects will progress.

“Development finance remains difficult to secure, coupled with strong build cost price inflation," commented Aaron Spring, Associate Director of Hotels & Leisure at Savills Ireland.

"However, the aspiration for new hotel development in Galway remains strong – and with good reason.

"Galway has traditionally enjoyed many high season events – such as the Galway Races, Arts Week etc. but current occupancy levels indicate demand is becoming less seasonal.”