Low-cost, high-volume business model has sparked flurry of activity from developers and operators over past 18 months
Dublin's tourist hostel market is attracting hotel investors due to potential for higher returns based on a low-cost, high-volume business model. While the pandemic and housing crisis reduced hostel capacity (at least 1,300 beds lost in 5 years), strong underlying demand is driving renewed investment and development, with institutions like Azora Group investing in the sector. Significant recent transactions and developments include the sale of Jacobs Inn Hostel, Red Rock Developments selling a site with planning permission for a 670-bed hostel, Marlet Property Group clearing a site for a 496-bed hostel, and the opening of Dawson Hostel.
