Hotel Expansion in Northern Ireland - A report from the Northern Ireland Hotels Federation.
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Hotel Expansion
in Northern Ireland
A report from the Northern Ireland Hotels Federation.
MAY 2019Hotel Room Growth 2015-2020
11000
10500
10,200
10000
9,992
9500
Q2
9,251 +227
9000
Q3
8500
+64
Q4
8000 +399
8,030
7,823 7,884
7500
2015 2016 2017 2018 2019 2020
Chart 1: Northern Ireland Hotel Room Growth Forecast to 2020
Accommodation Stock by Sector based on Room Numbers
10000
7500
5000
2500
0
Hotels Guesthouses Guest Accom B&B Self Catering Campus Acc
Chart 2: Accommodation stock by Sector based on Room Numbers
Table 1. Accommodation stock by sector
Type Premises Rooms
Hotels 142 9,302
Guesthouses 82 718
Guest Accommodation 162 985
Bed & Breakfasts 614 2,008
Self-Catering 3,060 4,103
Campus Accommodation 9 4,026
Totals 4,069 21,142
All accommodation types have seen growth. In particular, guest accommodation, Guest House and self-
Table 1: Accommodation Stock by Sector
catering. The bulk of this activity has been on the North Coast as this region prepares for The Open golf
competition in July. In certain cases, operators have opted for less traditional accommodation offerings
coming to market as guest accommodation or self-catering. Operating costs can be reduced by taking this
route and if may reflect the changing needs of the consumer who may prefer a more independent option.
Whilst Guest house numbers have been falling over recent years, a resurgence has begun with a number of
high-end deluxe five-star products coming to market. These have performed well and are filling in niche inIntroduction
The hotel sector in Northern Ireland has enjoyed a period of success. 2016 and
2017 were record years and the industry now has a very fresh, new product.
This report is an update on the hotel market catering. However, it is important to note that
in Northern Ireland. A more in-depth report there are a number of other accommodation
was produced in October 2018, highlighting classes which have entered the market in
the economic impact of recently opened and considerable numbers: student/campus
planned hotel construction, a forecast on its accommodation and hostels that also compete
effects, as well as analysis of the addition of for the visitor business. Both of these sectors
considerable supply to the market. have grown over the last two years with an
addition of 3,000 student dwellings in the
Background market in Belfast.
In May 2019, there are 142 registered hotels We have now included these in our analysis as
in Northern Ireland. In the last 24 months, their numbers present a challenge for hotels.
hotel numbers have increased by 1,500 rooms, They are effectively often chasing the same
the bulk of them in Belfast. Construction has business but there is limited data in terms of
slowed down in the city, but further stock may availability and occupancy.
come on stream in 2021 as a number of larger
projects come to fruition. A breakdown of accommodation types based
on May 2019 data is shown in Table 1 and Chart
On a pan-Northern Ireland basis, hotel room 2.
numbers were predicted to break the 9,500
level by late 2018 but this figure will not be All accommodation types have seen growth. In
achieved until late 2019 with a number of particular, guest accommodation, guesthouse
projects revising their opening dates and and self-catering. The bulk of this activity
others opting for non-hotel certification. has been on the North Coast as this region
prepares for The Open golf competition in July.
The considerable influx of rooms and the
compressed timeframe of their opening has In certain cases, operators have opted for less
had an effect in the market. Demand has traditional accommodation offerings coming
grown in all regions but has been outstripped to market as guest accommodation or self
by an increase in supply of some 19% over a catering. Operating costs can be reduced
two-year period. by taking this route and it may reflect the
Market re-adjustment in Belfast will take changing needs of the consumer who may
about eighteen months and, depending on prefer a more independent option.
development, other regions may experience a
similar trend. While guesthouse numbers have been falling
over recent years, a resurgence has begun with
Traditionally, in addition to hotels, the a number of high-end deluxe five-star products
market has included guesthouses, guest coming to market. These have performed well
accommodation, bed & breakfast and self- and are filling a niche in the marketplace.
Published in May 2019 by
Northern Ireland Hotels Federation
The McCune Building, 1 Shore Road, Belfast BT15 3PG
Tel: 028 9077 6635 Web: nihf.co.uk © 2019 Northern Ireland Hotels Federation
Hotel Expansion in Northern Ireland 3“ Nearly 10,000 hotel bedrooms by the end of “ 2019
After a record 2017, 2018 was a year of rooms grew throughout Northern Ireland and
consolidation. The last quarter of 2018 saw the that the first quarter of 2019 has limited event
effects of significant new stock come into play. activity and is heavily reliant on the domestic
This, coupled a with level of uncertainty due to market.
Brexit and a limited number of events, caused
a significant wobble to end the year. Derry-Londonderry and SW Ulster grew rate
and held occupancy. The in-depth forecast for
The year finished with a slight dip in occupancy Belfast, created by STR and Oxford Economics,
(74.5%), a small increase in rate (£79.09) and a shows some volatility in the market from late
reduction in RevPAR (£58.88). This was pretty 2018 with a return to growth in 2020.
much on forecast, with the influencing factor
being Belfast with its substantial room growth.
Figures for Q1 2019 show pressure on rate
and occupancy still evident. However, it is
important to note that overall demand for
Belfast
Belfast has seen the majority of growth over the past two years and this is
where rate and occupancy are under the greatest pressure.
The Belfast section of this report looks at hotel predicted for 2021. This includes a number
growth in two tables: of new players and brands for the city with
current forecasting indicating about 600
• 2a. Hotels that are currently in construction bedrooms coming online.
or due to open in 2019. There are only 143
rooms in total and opening dates have • Demand has grown considerably in the city
been fluid on other projects with no firm and as the supply curve tails off, rate and
dates at this time. occupancy should settle down, having a
• 2b. Probable hotel projects which could positive effect on these key metrics.
come to the market before 2020 but may
not progress in their current format. • The economy is under pressure. The impact
of Brexit on staff, skills and consumers may
The list is not exhaustive, and projects can have a dramatic effect on Belfast and the
evolve or re-emerge quickly, depending on wider NI market.
finance, need and planning. A couple of other
points to note: • The list of new hotels is by no means
exhaustive and may alter as consumer
• Rooms in Belfast have increased by 34% in trends and business needs evolve.
hotel terms, with additional stock in guest
accommodation campus accommodation It is important to note that two hotels, Titanic
and self-catering increasing supply Hotel and Bullitt, opened in 2016. When you
considerably. add this room stock, as well as The Flint and
easyHotel (which are not certified as hotels),
• The 150 new rooms to come into the city in you effectively have an increase of 44% in
2019 appear to be stalled at this time and overall rooms in a 26-month period.
may be delayed until 2020.
• As predicted, the next tranche of activity
is underway with considerable stock
Hotel Expansion in Northern Ireland 5Belfast Developments
The list is not exhaustive, and projects can evolve or re-emerge quickly, depending on finance, need and
The Belfast section of this report looks at hotel growth in two tables:
planning. A couple of other points to note:
2A. Hotels that are currently in construction or due to open in 2019. There are only 143 rooms in total and
• Rooms in Belfast
openings havebeen
dates have increased byother
fluid on 34%projects
in hotelwith
termsno with additional
firm dates stock
at this time.in guest accommodation
campus accommodation and self-catering increasing supply considerably.
2B. Probable hotel projects which could come to the market before 2020 but may not progress in their
current format.
• The 150 new rooms to come into the city in 2019 appear to be stalled at this time and may be delayed
until
Table 2A.2020.
Possible Belfast Hotel Openings in 2019 – currently under construction
• NoAs predicted,
Name the next Rooms
tranche ofDetail
activity is underway with considerable stock predicted
Grade for 2021.
OpenThis
includes a number of new players and brands for the city with current forecasting indicating about 600
Signature Living development. Bedroom
The George
1 bedrooms coming on line. 63 numbers now 63 and no opening date UG 2019
Best Hotel
confirmed at this time.
• It is important to note that demand has grown
Currently considerably
owned by SignatureinLiving.
the cityLimited
and as the supply curve tails off
2 rateTheandWaring
occupancy should63 settlework
down having aNo
underway. positive
openingeffect
dateon these key
confirmed at metrics.
UG 2019
this time.
• The economy is under pressure.SmallThe impact of Brexit
independent on staff,
boutique skills
hotel, and consumers may have a
possibly
3 dramatic effect on Belfast17and the
Bank Square wider
now NIaccommodation.
guest market. Initial work 4 2019
started, opening in 2019.
• The list of new hotels is 143
by no means exhaustive and may alter as consumer trends and business needs
evolve.
Table 2a: Possible Belfast Hotel Openings in 2019 – currently under construction
Table 3. Belfast Hotel Stock Analysis to 2019 (includes constructed projects only)
Grade 2017 2019 2017 2019 Change
Hotels Hotels Rooms Rooms
Four/Five Star 17 18 1,906 3,119 +64%
Three Star 11 10 930 715 -23%
Budget 7 9 864 1,183 +37%
Ungraded/Awaiting 3 2 122 97 -20%
Totals 38 42 3,822 5,114 +34%
It is important
Table to note
3: Belfast Hotel thatAnalysis
Stock two hotels, Titanic
to 2019 Hotelconstructed
(includes and Bullitt,projects
openedonly)
in 2016.
When you add this room
stock, as well as The Flint and easyHotel (which are not certified as hotels), you effectively have an increase
of 44% in overall rooms in a 26-month period.
The Northern Ireland Picture
Expansion beyond Belfast has also slowed down. Those listed below in Table 4 are either open or due to
come to market 2019 and will add 680 rooms to the region’s hotel stock.
The information in this report is Copyright to Northern Ireland Hotels Federation. No reproduction without appropriate credit.
The information in this report is Copyright to Northern Ireland Hotels Federation. No reproduction without appropriate credit.Table 2B. Longer term prospects – these could change, some have been proposed for a considerable
period of time and all may not proceed
No Name Rooms Detail Grade
Project with Urban spa and 21 more rooms. Plan
1 The Fitzwilliam 21 5
under review.
Aloft Hotel by Serrafin Hotels with a plan to open in
2 Titanic Quarter 280 4
2021.
Titanic
Planning granted for two buildings (155 + 120)
3 Quarter/Plater’s 275 3
bedrooms, possible South Yard Hotel.
Yard
Wellington Park
4 92 Replacement of existing hotel in new development. 3
Hotel
Development by McAleer & Rushe. Recommended
5 Corporation Street 250 for approval, having been originally proposed in 3/4
2008. In BCC planning process.
Redevelopment of Royal Avenue/Donegall St area.
6 Royal Exchange 140 ?
Part of larger project.
New scheme from the team behind Galgorm
7 St Jude’s Church 18 4
approvals for planning.
6-8 Queen Street +
McAleer & Rushe part of multi-use development at
8 Norwich Union 180 ?
proposal stage.
House
9 Odyssey Plaza 420 Outline Planning granted. ?
Part of multi-site development now called The
10 Sirocco Quay 100 ?
Waterside.
Crumlin Road Court
11 161 Site now up for sale. 3
House
Been on the cards for a while - supposedly due to
start this year. Could be another Accor product to
12 Fanum House 173 3
complement the ETAP - was originally planned as a
Novotel. Being developed by South Bank Square.
Conversion of warehouse in Cathedral Quarter by
13 Donegall Street 40 team behind Benedict’s. Now approved for Planning 4
– no date given.
Kings Hall Part of larger redevelopment scheme submitted for
14 160 4
Wellbeing planning in December 2017.
15 Malone Lodge 20 Addition of 20 rooms. 4
Benedict’s
16 24 Awaiting planning - will add to existing property. 4/5
Extension
17 The Mission Hotel 48 Now progressing to planning with an £8.5m hotel. 4
Boutique conversion of listed building on Queen St
18 The Marquis 78
currently being submitted for planning.
Prince’s Building site at Tipsy Bird recently
19 Glendola/Carlton TBC purchased with view to upper 4-star hotel
development.
Development of Boutique Warehouse property by
20 Hill Street 17
Ducales Group.
Oakland Holding planning an aparthotel in Belfast
21 Lyndon Court 184 TBC
City Centre.
A hotel and apartment development (87 rooms plus
22 Ten Square West 82
46 plus workspace).
A hotel and apartment development (82 rooms plus
23 Ten Square South 87
26 aparthotel plus workspace).
2850
Table 2b: Longer term prospects – these could change and all may not proceed
The information in this report is Copyright to Northern Ireland Hotels Federation. No reproduction without appropriate credit.
Hotel Expansion in Northern Ireland 7Table 4. Northern Ireland Planned Opening in 2019
No Name Rooms Detail Grade
Construction underway and due to open in Q3
1 Lisburn Square 52 3/4
2019.
2 Premier Inn, Bangor 85 Under construction with projected opening in 2019. 3
Derry-Londonderry. Under construction, backed by
3 Holiday Inn Express 159 Duddy Group. 119 opening Q2, additional 40 rooms 3
to be added to plan.
4 Killeavy Castle Hotel 46 Opened in Spring 2019. 4
Ballycastle, solar-powered hotel and chalet village
5 The Salthouse 24 proposed for North Coast. Development underway
and should be in market June 2019.
Ballymena property proposing new spa and hotel
6 Tullyglass 45 4
room project.
Londonderry Arms, Andras House scheme, planning approved and
7 87 3/4
Portrush hoping to open in 2019.
8 Leighmor, Ballymena 12 Additional room capacity and refurbishment. 4
Marine Hotel, Additional rooms already open with spa &
9 10 3
Ballycastle restaurant in a £1m project.
10 Premier Inn, Lisburn 51 Extension to existing property. 4
Premier Inn, Belfast Approved and due to open in 2019 by Moorefield
11 81 Budget
International Airport Construction.
12 Bayview Hotel 20 Extension to North Coast property – open in Q2. 3
13 Millbrook Hotel 6 Addition of 6 POD’s at hotel site in Ballynahinch.
14 Premier Inn Larne 18 Extension to existing property.
696
The4:14Possible
Table projects above Ireland
Northern are currently due to complete
Hotel openings in 2019. However, prudent forecasting would suggest
in 2019
that some of them may continue in 2020. Planning and finance are proving to be the biggest challenges for
hotel development outside Belfast and there are concerns that projects may not be viable due to on-going
delays and uncertainty.
In addition to new builds, there are a number of other projects of note. These include the upgrading and
refurbishment of the Dunadry Hotel, hoping to achieve four-star status when their bedroom revamp is
completed. The sales of the Templeton Hotel to the Galgorm Resort & Spa owners with a view to upgrade
and reposition the property and the possible sale of the Hilton Templepatrick which may also rebrand on
completion.
The information in this report is Copyright to Northern Ireland Hotels Federation. No reproduction without appropriate credit.Northern Ireland
Growth outside Belfast is well underway, albeit at a slower pace
than has happened in the city.
Expansion beyond Belfast has also slowed currently being discussed. It is unlikely that
down. Those listed below in Table 4 are either these will come to market before 2020.
open or due to come to market 2019 and will
add 680 rooms to the region’s hotel stock. North Coast
Planning continues to be the impetus to hotel
The 14 projects above are currently due development in this region. A substantial
to complete in 2019. However, prudent amount of new product in non-hotel categories
forecasting would suggest that some of them has come into the market: self-catering, guest
may continue in 2020. Planning and finance accommodation and high-end guesthouses
are proving to be the biggest challenges for have all opened. A number of them are hoping
hotel development outside Belfast and there to capitalise on the opportunity that The Open
are concerns that projects may not be viable will bring in 2019 and build on the golfing
due to on-going delays and uncertainty. legacy this should create.
In addition to new builds, there are a number Newry, Mourne & Down
of other projects of note. These include the Some progress on a couple of projects in this
upgrading and refurbishment of the Dunadry area. Killeavy Castle has now opened, and the
Hotel, hoping to achieve four-star status when Downpatrick Hotel and Newcastle Promenade
their bedroom revamp is completed. The sales have progressed to consultation. Other
of the Templeton Hotel to the Galgorm Resort projects are still possible in this area with a
& Spa owners with a view to upgrade and number of investors holding back until there is
reposition the property and the possible sale a clear picture on Brexit.
of the Hilton Templepatrick which may also
rebrand on completion. Northern Ireland (regional excluding Belfast)
The number of new projects coming into
The projects above are those in the public the public domain has slowed. Many are not
realm and a number may not proceed. There yet in the public domain but with over 1,000
are a number of other projects not in the bedrooms in planning, growth will continue,
public domain which may replace them. albeit at a reduced pace. Some of this may be
stalled reaching the market after 2021.
Below is a brief synopsis of activity by region:
Derry-Londonderry
A reasonable performance last year. A number
of security issues impacting on business this
year, but rate and occupancy have held up. The
city has 685 rooms with opening of the Phase
1 Holiday Inn Express; this number will increase
to 804, which may impact trade in the off
season.
There is no date for the development at
Ebrington and a number of other projects are
Hotel Expansion in Northern Ireland 9Table 5. Northern Ireland Proposed Developments – likely to open beyond 2019
No Name Rooms Detail Grade
Lough Road Lurgan. Planning renewal for site
1 Silverwood Hotel 120 4
already earmarked for hotel.
Castle Street, Tender issued by council for hotel project with up to
2 100
Lisburn 100 rooms.
Merrow Hotel and Held up due to difficulties with planning and in
3 119 4
Spa, Portstewart judicial review.
The Dunluce Resort Removed from planning and revised scheme due to
4 115 4/5
& Spa be submitted in 2019.
Atlantic Hotel
5 43 Planning granted for a 43-bedroom extension. 4
Portrush
Upgrade of B&B/Self Catering Operation on the
6 Causeway Tavern 24 4
North Coast.
Luxury product with golf courses. Granted planning
7 Hillsborough Hotel 156 4
in September 2016 but now back for changes.
8 Inver River Hotel 24 Boutique Hotel Development in Larne.
Independent boutique hotel with planning for 91
9 Ebrington Square 91
bedrooms in Derry-Londonderry.
Planning approved for Elm Village to develop
10 Foyle Street 24
Boutique Hotel project.
11 Downpatrick Hotel 51 Currently in planning consultation.
Development of site on the Central Promenade with
12 Newcastle Prom 41
rooftop bar.
Seven Hills Hotel & Relaunch and expansion of 50-bedroom hotel that
13 100 4/5
Spa, Rostrevor area was granted planning in 2011.
New project to regenerate Bangor centre to include
Queens Parade
14 120 a hotel run by Beannchor – larger hotel now
Bangor
proposed.
Newry Boutique Lodged with planning in September 2017. £3.4m
15 32 4
Hotel project.
St Anne, Dungannon Recently announced and going to planning,
16 Project mixed with 0 developed by Moorefield Construction with a hotel
Retail as part of scheme.
Extension to existing property current in early
17 Westville Hotel 30 4
stages of development.
Continued plans for this site with additional
18 Galgorm Resort 60
bedrooms, bar and restaurant development.
Unipork Site,
19 65 Bedrooms and cinema site in Enniskillen.
Enniskillen
20 Premier Inn, Bangor 18 Extension to existing property.
1333
Table 5: Northern Ireland Proposed Developments – likely to open beyond 2019
The projects above are those in the public realm and a number may not proceed. There are a number of
other projects not in the public domain which may replace them
Below is a brief synopsis of activity by region:
Derry-Londonderry
A reasonable performance last year. A number of security issues impacting on business this year, but rate
and occupancy have held up. The city has 685 rooms with opening of the Phase 1 Holiday Inn Express; this
number will increase to 804, which may impact trade in the off season.
The information in this report is Copyright to Northern Ireland Hotels Federation. No reproduction without appropriate credit.Conclusion
Brexit, a massive increase in supply and a political vacuum are just some of
the challenges that need to be resolved for the industry to thrive.
Hotel expansion has slowed down throughout the present time, this could present a real
Northern Ireland since 2018 with very few problem going forward. Current levels
projects still in construction. It is likely that a would suggest an additional 1,500 staff are
couple of new developments will start in 2019 needed at a minimum. Lack of staff and the
and the market will seek to rebalance itself to increasing level of skills required are also
accommodate new stock added over the last leading to considerable wage inflation.
two years.
• Civil Unrest – recent incidents led to some
Point of note: cancellations and negative PR.
• Brexit – remains high on the agenda
with no clear pathway at this stage. The • Capacity – visitor flow and high demand at
economy has slowed in Northern Ireland visitor attractions is starting to present a
with concerns about staffing still prevalent. real challenge at the peak times. Negative
reports on this in the media are causing
• Competition – a considerable number concerns.
of rooms are available in other
accommodation categories. Student • Dublin – Dublin continues to maintain
accommodation, guest accommodation a high rate with a couple of concerns
and self-catering are all on the increase. emerging on occupancy and rate pressure.
Platforms such as Airbnb are also causing
disruption in the market. • Business Tourism – limited activity with
little business predicted for 2019. Growth
• Demand – it is important to note that in this sector imperative not only weekend
demand throughout Northern Ireland for v weekday occupancy but to address ADR
hotel rooms has grown in 2019. Forecasts and RevPAR figures.
suggest that this pattern will continue.
• Exchange Rate – the continued weakness
• Expansion – the industry is seeing the of Sterling has served the industry well in
effects of rapid growth concentrated into terms of value but the flip side of this is
a short timeframe. Pressure on rate and that goods and services from the Eurozone
occupancy in Belfast is likely to continue have increased in price.
for the remainder of the year.
• Inflation & Economic Growth – inflation
• Staffing – still remains a high priority. A remains low with economic outlook being
broad-brush metric is that each additional revised downwards as the uncertainty of
hotel room requires ONE additional Brexit erodes business confidence.
employee. Given the shortage of staff at
Hotel Expansion in Northern Ireland 11You can also read
