HOTEL room numbers in the north are set to surpass 10,000 by next year, but expansion is slowing, according to new industry figures.
The latest Northern Ireland Hotels Federation (NIHF) report shows that after a bumper 2018, which saw 1,221 bedrooms added to the market, growth is forecast to be more modest this year, with political uncertainty cited as a factor.
At present there are 142 hotels in the north, providing 9,302 hotel bedrooms.
According to the data 741 new rooms will come to market from 14 projects during 2019, the majority outside of Belfast, bringing the total to just below the 10,000 mark (9,992).
It had been expected that room numbers would break 9,500 by the end of the last year, but this milestone was revised to late 2019, largely due to delays in projects, such as the long-awaited George Best Hotel.
In Belfast, where the bulk of the expansion has taken place in recent years, the first quarter of 2019 has been challenging, with very few projects still in construction.
However, last month's figures show an improvement, with trade rallying in terms of both occupancy and room rate. Across the rest of Northern Ireland there has been a strong start to the year with good rates and occupancy levels.
The overall occupancy rate dipped slightly at the end of last year to 74.5 per cent, while there was a small increase in the average rate, which stood at £79.09. There was also a reduction in the RevPAR (revenue per available room) to £58.88.
Looking ahead considerable hotel stock is predicted to come to the market in 2021. This includes a number of new players and brands for the city with current forecasting indicating about 600 bedrooms coming online.
Janice Gault, chief executive of the NIHF said the local sector has come to the end of a substantial expansion phase, but there are still grounds for optimism.
"Demand has increased by 4.3 per cent year to date and this is well ahead of last year," she said.
"Hotel investment from 2016 to the end of 2019 will be in the region of £600 million. This presents massive opportunities. A well invested hotel stock allows the region to bid for and attract large events. It also creates a good impression for visitors, helping to raise Northern Ireland’s appeal as a destination."
Ms Gault, however highlighted the lack of a local government and Brexit as key issues affecting growth in the sector
"There are two major challenges for the industry. Firstly, staffing across all levels needs to be addressed. The situation has been exacerbated by Brexit and it may prevent the sector from reaching its true potential or growing to greater levels. Secondly, there is the issue of promotion. As an industry we need government to support us. An increase in marketing spend is required to improve awareness of Northern Ireland, attract more visitors and build upon the significant investments that the private sector has made," she added.
