Belfast hotel hits market for £21m

CBRE Northern Ireland has listed the room2 aparthotel in Belfast city centre for sale with an asking price of £21.2m. The hotel, which opened in October 2023 and has 175 bedrooms, is Belfast’s first low-carbon aparthotel. The Northern Ireland Investment Fund, managed by CBRE Capital Advisors, provided construction finance for the hotel. CBRE brought the hotel to the market at its commercial property Outlook 2025 event at ICC Belfast, which was attended by more than 500 guests. Speaking at the event, Brian Lavery, CBRE NI managing director, said: “Northern Ireland’s hotel sector enjoyed a record-breaking year in 2024. With £57m invested across eight sales, the market has set new benchmarks in both transaction volume and trading performance. “Revenue per available room rose by 8% in the first nine months of 2024 in Belfast and across Northern Ireland, and this is a trend we expect to continue throughout 2025.” He further highlighted that new developments, refurbishments and key transactions showcase the sector’s growth potential and said room2 Belfast would draw strong interest from investors looking to do business in Northern Ireland. New hotel brands such as Adagio, Staybridge Suites and Yotel are also set to begin construction in Belfast. The key takeaways The Outlook event was themed Real Estate and the AI Landscape, and industry leaders reflected on market performance and future trends. Belfast’s office market saw a 33% rise in take-up, reaching 348,000 sq ft in 2024, guests at the event heard. Prime retail locations also continue to attract strong occupier interest. While the logistics sector has drawn significant interest from retailers and manufacturers, conversion rates remain low, owing to site shortages and rising build costs. Meanwhile, total commercial property investment dropped by 65% to £118m across 24 transactions, down from £338m in 2023. Student accommodation also presents a key opportunity, as 26% of Belfast’s full-time students rely on alternative rented housing, highlighting the demand for PBSA. Simon Brown, head of UK office research at CBRE, provided key insights on the interplay between the UK’s macroeconomic environment and Northern Ireland’s property market. He said: “The Northern Ireland market continues to reflect broader UK trends, with resilience in key sectors. As sustainability and innovation remain focal points, Belfast is well-positioned to attract both investment and international attention. “As we look ahead, it is clear that sharing insights and fostering collaboration across the wider business community are key to unlocking Northern Ireland’s full potential. By leveraging this knowledge and working together, we can drive increased investment, innovation and growth across the region, ensuring that Northern Ireland remains a competitive and attractive destination for years to come.” Photo © Lamington Group