Dublin City Council Doubles Hotel Development Contributions to €244/sqm from July 1

Dublin City Council will double development contributions for hotels, tourist hostels, and aparthotels to €244 per square meter starting July 1. This rate is twice that applied to most other commercial developments.

Colliers analysis indicates this increase will significantly raise upfront development costs, potentially pausing marginal schemes and shifting investment towards existing assets. Abigail Holland, divisional director at Colliers, noted that such sharp cost increases directly impact returns, diverting capital to lower-risk opportunities.

For a typical 150-bed hotel (8,250 sq m), the contribution will rise from €1 million to €2 million. Colliers warns that in a market already facing high construction costs, expensive debt, and planning delays, this change could halt projects. It may also necessitate renegotiating land values to maintain target returns, impacting mid-market and conversion developments. This levy comes amid a projected shortfall of 10,000–15,000 hotel bedrooms by 2031.