rooms in ireland

Seeking rooms in Ireland ? Your timing could not be better. The supply and demand equation has unbalanced in the last number of years and has been compounded by the severe economic downturn. Rooms in Ireland are now cheaper and availability is high. The 4 and 5 star hotels can offer particularly good value.

The Irish hotel building spree was fueled by bank financing and tax incentives. Now that the plug has been pulled on a clearly unsustainable situation, there is an oversupply of Irish room stock and under-supply of people to fill the vacant rooms. And here is where it gets interesting: otherwise defaulting hotels are being propped up by the Irish government through a scheme which is bailing banks out of their “bad loans” book. And, of course, many recent-build, state of the art hotels in Ireland (some arguably with the best rooms in Ireland) have resolved themselves inexorably into ”bad loans”. The banks are keeping many hotels (call it a hundred plus hotels in the republic if you are to believe what you read) open to get them processed into the bailout scheme. The operators of many of these hotels have slashed room rates to keep money turning, although in a regular run p&l business scenario they would close in the morning. And the main reason that the banks are keeping these hotels open is that the hotels will loose significant market value if they cease trading. This also has the knock-on effect of devaluing the price of hotel rooms in Ireland that are offered by bona fide hotels in close proximity to these “quasi-terminal” hotels.

And for all of this misery, the customer wins. Because now more than ever, rooms in Ireland offer the best ever value.