The Northern Ireland Hotels Federation (NIHF) launched its Hotels 2025 report this week (8th April), revealing the sector is on course to exceed the much-anticipated 10,000-room threshold by 2026, with investment levels set to approach £2 billion by 2027.
The report, launched at the annual Business Outlook in the Clandeboye Lodge Hotel, Bangor, outlines the recalibration of Northern Ireland’s hotel industry, driven by strategic acquisitions, expansion projects and the diversification of accommodation offerings.
In 2019, following a period of significant hotel development, projections suggested that the sector would hit 10,000 bedrooms by 2020–2021. However, the COVID-19 pandemic stalled progress, with the certified hotel room count now standing at 9,548 across 141 hotels.
However, this figure does not capture the full scope of the sector’s growth. Industry experts suggest the 10,000-room milestone may have already been surpassed when factoring in the rapid rise of alternative accommodation. Lodges, suites, studios, forest dens and shepherd huts, many located on hotel grounds, now form an integral part of the guest offering. These units provide a more independent style of stay while still giving access to the full range of hotel services, effectively expanding the sector’s true capacity.
Vicky Green, President of the Northern Ireland Hotels Federation, said: “Northern Ireland’s hotel industry has demonstrated exceptional resilience and vision in recent years. Despite ongoing challenges, we continue to invest, evolve and lead the way in delivering top-class accommodation and memorable guest experiences. This next chapter is not just about numbers. It’s about reimagining what hospitality looks like and futureproofing our offering for the years ahead.”
Janice Gault, Chief Executive of the Northern Ireland Hotels Federation, added: “We are seeing a shift in how guests want to stay. While the traditional hotel room remains central, today’s traveller increasingly seeks out unique, flexible and experiential options. From eco-cottages to forest lodges, hotels are adapting to meet demand and it’s this innovation that is quietly pushing our room numbers beyond the 10,000 mark.”
The report highlights that although only four new hotels are set to open in 2025 – The Walled City Hotel in Derry-Londonderry, The Marcus in Portrush, Dunluce Lodge in Portrush and The Bedford in Belfast – several established properties are undertaking significant expansions. An estimated 800 new rooms are expected between 2026-27, further boosting capacity.
Despite rising room rates, profitability remains under pressure due to escalating food prices, labour costs and inflation. The report also highlights ongoing regulatory challenges, such as unregulated accommodation, the rise of student housing and the need for planning reform to reflect changing consumer demands.
As the sector approaches a £2 billion investment footprint, the Northern Ireland Hotels Federation (NIHF) remains optimistic about growth. With The Open Championship set to return to Royal Portrush this summer and a strong pipeline of new projects underway, the hotel and wider tourism industry is well-positioned to expand and welcome more visitors.
Tourism’s inclusion in the Plan for Government and the recognition of the sector as an economic powerhouse has been widely welcomed. It is hoped this commitment will encourage Government at all levels to create a more favourable climate for investment, regulation and infrastructure, enabling the hotel sector to reach its full potential.
