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North's hotel room numbers to hit 10,000 by 2019

Hotel room numbers in Northern Ireland are sit to hit 10,000 in 2019, boosted by developments such as the 304-bedroom Grand Central Hotel, due to open in June
Hotel room numbers in Northern Ireland are sit to hit 10,000 in 2019, boosted by developments such as the 304-bedroom Grand Central Hotel, due to open in June Hotel room numbers in Northern Ireland are sit to hit 10,000 in 2019, boosted by developments such as the 304-bedroom Grand Central Hotel, due to open in June

HOTEL room numbers in Northern Ireland are likely to reach 10,000 by next year according to a new report.

The latest hotel figures for 2017 collated by STR highlight a strong year, with growth across all regions, especially in Belfast.

Occupancy levels rose 2.9 per cent from 2016 to 77.7 per cent last year, with Belfast breaking the elusive 80 per cent mark.

Room rates also improved over the 12 months, with the Belfast rate up by 13.9 per cent to £79.80 a night on average. Total room revenue (£65.20) also grew by 16.9 per cent in a positive set of figures.

There are currently 138 registered hotels in the north, an increase of two over the year. The 120-bedroom Titanic Hotel in Belfast and the 21 room Shipquay Hotel in Derry have added to the offering, while additional rooms were built at the Bullitt Hotel and Ten Square in Belfast.

According to the Northern Ireland Hotels Federation Expansion Report room numbers are likely to break the 9,500 level by the end of the year, in what would be the biggest growth spurt for almost a decade. The bulk of this expansion is in Belfast, with currently over 1,000 bedrooms under construction. The majority of these will be open in 2018 bringing the city’s hotel room stock to over 5,000 bedrooms. Projects include the 304-bedroom Grand Central Hotel, due to open its doors in June, the 190-bed AC Hotel by Marriott at City Quay, due to open in April and the Maldron Hotel at Brunswick Square, set to begin operations in March. Not to be outdone Derry is also expected to experience growth through the year, with a planned 250 plus rooms, of which a new Holiday Inn Express will add an additional 119 rooms to the city.

The report further states that the second quarter of the year is due to be the most productive in Northern Ireland, with 832 new rooms added, while at the end of 2018 it is forecast that as many as 9,878 hotel bedrooms could be available to book in the north. By 2019 that number is expected to break the 10,000 mark.

Director of client relationships at STR, Sarah Duignan said, in spite of the positive figures the hotel market in Northern Ireland still has room for growth.

"There will likely be a period of adjustment ahead as existing hotels adapt to the added competition of new properties coming online. Taking comparable destinations that have experienced similar growth patterns into consideration, Northern Ireland should be able to absorb new hotel supply relatively quickly, with minimal impact on performance.”

Chief executive of the Northern Ireland Hotels Federation, Janice Gault said the 2017figures built on the recovery experienced in the second half of 2016.

"Growth in occupancy was supported by an improvement in room rate throughout all regions which is great news," she said

"The data indicates room sales in 2.3 million bedrooms sold throughout the year contributed £175 million to the local economy with a VAT contribution of £35m."

Mrs Gault added however that the industry continues to face a "number of challenges", with staffing the primary cause for concern.

"We know that employers are experiencing issues with recruitment and retention of staff. There is a lack of skilled personnel and this coupled with a poor image of roles within the industry are all contributory factors. An increase in demand for staff from new openings will clearly exacerbate the situation and may constrain growth. We need to be working with education providers to find innovative solutions to address these issues, ultimately capitalising on the positive opportunities that this investment presents for Northern Ireland society as a whole."