Premier Inn owner to upgrade Irish hotel rooms target by 30pc amid growing demand

Whitbread Plc, one of the UK’s largest hospitality companies, has announced on its website plans to expand its presence in Ireland in response to high demand and an undersupply of branded hotel rooms.

The new 5,000 medium-term growth target is up on its current target of 3,500 bedrooms.

The UK-listed company, with a valuation of over £5.4bn (€6.4bn), said it had a list of target locations where it wishes to run a hotel. These included additional sites across Dublin city centre and five new locations around Dublin.

Across the country, it was targeting locations with strong leisure and business economies and that were likely to experience a growth in visitor numbers. These included Killarney, Kilkenny, Kinsale, Sligo, Westport and Tralee, alongside the larger towns and cities of Cork, Galway, Limerick, Waterford, and Wexford.

Towns targeted include Killarney, Kilkenny, Kinsale, Sligo, Westport and Tralee, alongside the larger towns

Whitbread also said it is seeking new hotel locations for Premier Inn in Dublin city centre at Heuston and Connolly stations, South Docklands, and Dublin 2. In addition, Whitbread is seeking new spots around the capital to build on the success of other sites around the country, including one at Dublin Airport.

In the announcement, Matt Gent, development manager for Whitbread in Ireland, said the brand’s confidence in the country was driven by its performance in Dublin and Cork.

Whitbread said the move was driven by Ireland’s strong economy, low unemployment and a predicted rise in international visitors

“We believe there are many further opportunities for Premier Inn in inner and outer Dublin and are confident the brand will perform well in towns and cities across Ireland with strong local business economies and drivers of year-round tourist demand. It continues to be an exciting time for us in the country.”

Whitbread has predicted that total consumer demand for hotel accommodation in Ireland will surpass 20 million bedroom nights towards the end of the decade.

It said this was driven by the country’s strong economy, low unemployment rate and a predicted rise in international visitors.

The uplifted requirement forms part of Whitbread’s established medium-term growth plan of 125,000 Premier Inn rooms across the UK and Ireland.

Ireland contributed £16m, to its 2.96bn recorded revenue for its 2024 financial year to date up from £10.3m the previous year

Whitbread launched Premier Inn in Ireland in 2018 after acquiring a development site in Dublin city centre. It now operates a network of six Premier Inn hotels in Dublin and Cork and employs more than 200 people across the country.

Whitbread has over 850 hotels across the UK and Germany. In those markets, it counts over 85,000 rooms in the UK and 10,500 in Germany, employing over 38,000 people.

According to Whitbread’s results for its 2024 financial year to date, it recorded revenue of almost £2.96bn. The results show Ireland contributed £16m, up from £10.3m the previous year.

New hotel rooms are in high demand. According to a study by Mitchell McDermott, nearly 2,600 new hotel rooms were added in the Dublin region during 2023 but multiples of that number are needed.