Hospitality sector remains strong in Northern Ireland amidst economic challenges

Despite facing economic headwinds and sector-specific challenges elsewhere, the hospitality sector in Northern Ireland remains robust and continues to exhibit growth, underscoring its enduring appeal as an attractive investment destination.

Hotel Performance Exceeds Expectations

According to the most recent findings from CBRE NI's research, the hotel industry in Northern Ireland has demonstrated considerable expansion throughout the third quarter of 2024, marked by an impressive 8% rise in revenue per available room when compared to the corresponding period in the previous year.

Key happenings within the industry include the valuation of the Armagh City Hotel at £9 million for sale purposes, as well as the takeover of the Londonderry Arms Hotel in Carnlough by an investment group, with plans to transform it into a revolutionary new concept – Ireland's first whiskey hotel.

Strong Investment Activity in Hospitality Sector

The commercial property agent has reported substantial investment and development activity in the region, which serves as a testament to investor confidence in Northern Ireland's hospitality market.

Retail Sector Faces Challenges, But Belfast City Centre Shows Signs of Rejuvenation

Notwithstanding the persistent difficulties faced by the retail sector, the emergence of fresh openings and enlarged premises by well-established brands like H&M and Apple suggests a more lively and rejuvenated central business district in Belfast.

The industrial market has seen a relatively subdued performance over the past quarter, characterized by a decline in demand for larger warehouse units and an acute shortage of suitable accommodation options in this specific size category.

"Residential property transactions have picked up pace since the opening months of 2024, following a slowdown last year due to rising borrowing costs. This has been accompanied by notable price growth."

Simon Brien

According to CBRE NI managing director Brian Lavery, the exceptional growth in Northern Ireland's hotel sector is largely due to the ongoing presence of confident investors and significant development projects.