A survey of hotels in the Republic and Northern Ireland has found that profits in the sector fell in 2006 because of higher costs, mainly wages and areas such as electricity and gas.
Accountancy firm Horwath Bastow Charleton said 5,500 new hotel rooms were added to the market during the year. Its report said occupancy levels increased to just under 70%, with the rate in Dublin hitting what it said was a record 76.8%.
The average room rate in a Dublin hotel was €136.63. Mid-price hotels were the most profitable sector, but hotels on the western seaboard continued to struggle, according to the report. It said that while occupancy had increased, room rates were the lowest and profits had continued to decline.
The luxury market received a boost in September, when the Ryder Cup lifted occupancy rates to 82.2%.
25.6% of rooms were booked over the internet, up from 20.8% in 2005 and almost double the percentage from 2003.
