The Irish Hotel Association has issued new rules aimed at protecting low-cost accommodation against the rising threat of a hotel price war.
In a statement, the association said the new regulations will reduce the number of hotel operators with the lowest hotel prices from 11 to six, and it said hotels could only offer discounted rates for a maximum of five nights per week.
The association said it expected to see a drop in hotel operator numbers from 4,000 to 1,500.
The hotel industry has already faced criticism over the new rules, as many of its most profitable operators are already struggling financially.
The new rules will affect 2,500 hotels, with the remaining 1,000 hotels expected to follow in the coming months.
The regulations, which take effect from July 1, will also limit the number hotels allowed to offer discounts to lower-income residents.
The rules will apply to the majority of hotel rooms, including single rooms and hotel rooms booked with a non-resident or a spouse.