Bedroom letting rates in Northern Ireland reached an all-time high in 2023, averaging £134.32 (€158.46) compared to £127.98 (€150.97) in 2022, with hotel services such as food and beverage sales also growing during the year.
This is according to an annual hotel industry survey, conducted by Sumer Northern Ireland, formerly the Belfast office of ASM Chartered Accountants.
'Buoyant Market'
The number of hotel bedrooms occupied across the region in 2023 was 2.31 million, a 10.5% increase from 2022.
Although short of the 2019 record of 2.73 million, the survey ’s results illustrate 'a buoyant market with strong signs of continued growth' in the wake of the COVID-19 pandemic.
'Upward Trajectory'
“Demand for accommodation is on an upward trajectory and while overall bedroom bookings still lag behind the high watermark of 2019, improved room rates mean that income from the sale of bedrooms is the highest on record," said Adrian Patton, director at Sumer Northern Ireland.
"So, too is income from other hotel services so when looking at overall revenues, the industry has performed very well."
'Ongoing Challenges'
However, Patton added that the improvement in revenues was not uniform across Northern Ireland.
"Demand for rooms in rural hotels did not improve materially when compared to 2022, whereas in Belfast and Derry/Londonderry, there was a significant increase in the number of bedrooms occupied," said Patton.
“On balance, the report shows a very good year for hotels in Northern Ireland but ongoing challenges around operational costs, staffing, the removal of support for business rates and a high rate of VAT means that hotel managers continue to face a range of obstacles.”
