Northern Ireland's hotel room revenues climb despite political uncertainty
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Hotel room revenues in Northern Ireland have risen 8% this year, according to a new sector report from CBRE.
The increase in the first nine months, compared to the same period last year, came despite political and economic uncertainties contributing to slower activity across other sectors of the real estate market — notably investment.
CBRE said just £4.2m (€5.04m) was transacted during the third quarter, bringing the total for the year to £87.5m (€1.05bn) — a 68% decrease compared to 2023.
The office market was boosted by the inclusion of three serviced office centres, recording 140,096sq ft of take-up in the third quarter. However, CBRE said occupier demand remains selective with a preference for high-quality, tenant-ready spaces.
"The performance of the hotel sector in Northern Ireland has been exceptionally strong throughout 2024," the managing director at CBRE NI, Brian Lavery, said.
"Despite broader economic challenges, we’ve seen substantial investment and development activity, reinforcing the confidence investors and operators have in the region’s hospitality market.
CBRE said Northern Ireland continues to experience pockets of growth, but market sentiment remains tempered by economic headwinds and uncertainty surrounding the forthcoming British labour government budget.
“With borrowing costs still high and investors waiting to see the full impact of predicted fiscal policy changes, activity levels have slowed across several sectors," Mr Lavery said.