CITY planners today granted planning permission for the development of a 165-bed hotel in the heart of the city.
Dublin company Tetrarch Capital had submitted plans to build the seven-story budget hotel in Parnell Place in August.
The project will redevelop 7-9 Parnell Place, which previously housed Flor Griffin and Mahers.
The approval of the project is a significant boost for the city's tourism accommodation sector. There are more than 1,300 additional hotel beds in various stages of planning and development in several projects throughout the city. If they are all constructed, it would increase the city's total accommodation stock by more than one-third. Currently, the city is experiencing more than 80% occupancy, according to Failte Ireland. It is an increase from 75% occupancy in 2013.
During the same period, average room prices have also increased from €68.18 in 2013 to €102.99.
The new development is located near the new Maldron Hotel, which is due to open before the end of the year, and follows the approval of new hotels on Horgans Quay, MacCurtain Street and Sullivans Quay, as well as the granting of permission for a planned expansion of the Metropole.
The planned seven-storey building is also located close to the planned 15-storey Prism office development, which has been appealed to An Bord Pleanála, and represents a further addition to the city's upwardly-expanding skyline.
Tetrarch's proposal also involves the demolition of buildings to the rear of the premises facing onto Deane Street, where the entrance to the new hotel will be.
A historic laneway that previously existed between the two buildings, linking Parnell Place to Deane Street, will also be reinstated.
In its application, Tetrarch said there is an acute undersupply of budget hotels in Dublin and Cork.
“Branded budget hotels make up approximately 21% of total hotel bedroom stock in London and approximately 28% in Edinburgh.
“In Dublin and Cork the % of such stock is currently less than 5% currently and the applicant projects that this will rise to approximately 7% with the delivery of the new hotel stock anticipated in both cities."
The buildings facing Parnell Place are protected structures and they will be maintained but renovated for hotel use.