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The Northern Ireland Hotels Federation (NIHF) has launched a report, ‘Hotels 2024’, providing a comprehensive analysis of the current hotel landscape, investments, and emerging trends.
The report, launched as part of the Federation’s Business Outlook event hosted by Mark Simpson at the Clandeboye Lodge Hotel on 20 March 2024, marks a milestone as the NIHF celebrates its twenty-fifth anniversary this year.
Eddie McKeever, president of NIHF, said: “The industry has been transformed since 1999 investing over £1.5bn and almost doubling the number of bedrooms in the sector. As a profession we support 10,000 jobs directly and a further 5,000 either indirectly or induced. It is a story of success which has the ability to grow and provide further economic benefit to Northern Ireland.”
Janice Gault, chief executive of NIHF, added: “The recent 2% growth in hotel bedrooms in 2023 has been fuelled by notable openings such as The Ebrington Hotel in Derry-Londonderry and Room2 hometel in Belfast. At the moment, there are nine live projects which represent £100m in investment, with potential future investments reaching £200m.
“Progress from concept to construction is a protracted one with projects adapting and evolving to reflect new consumer trends. Predictions for 2024 suggest growth around the 2% level this year with a spurt in the 2025-26 timeframe.”
The report argues that given the challenges of inflation and rising construction costs, acquiring a hotel presents a significantly faster and more economical option. This approach aligns with current industry trends, as evidenced by a notable shift towards mid to upper-scale star ratings. Emerging patterns include the revitalisation of historic sites into hotels, offering guests an authentic experience.
Despite the challenges, the report reinforces the industry’s resilience and commitment to growth, with continued investments driving job creation and community transformation.
Over the past twenty-five years, the sector has witnessed a £1.5bn investment, resulting in a vibrant hospitality landscape. Looking ahead, the NIHF anticipates another transformative phase, further solidifying its position as a cornerstone of Northern Ireland’s economy.
Gault concluded: “While political stability and the return of The Northern Ireland Executive have been welcomed, challenges persist, including securing affordable financing, addressing the 20% VAT rate, attracting suitable staff, and navigating the impending introduction of the ETA, perceived as a potential barrier to all-island tourism development.”
