£1m investment for local hotels

£1m investment for local hotels

9 April 2025

DETAILS of a £1m fund to help secure new hotel investment across the district have been announced this week.

The cash is being made available by Newry, Mourne and Down Council for new hotels with a minimum capacity of 15 bedrooms.

In addition, the tourism accommodation programme funding is also earmarked to help existing hotels add a minimum of 15 new bedrooms to expand the accommodation they can offer.

News of the funding package was announced at an event on Monday at the district’s premier Slieve Donard Resort hotel in Newcastle which highlighted opportunities connected to upcoming multi-million pound public and private sector investments across the district in tourism, regeneration, infrastructure and digital innovation.

Under the investment microscope at the Slieve Donard event was examining the uniqueness of the district and utilising its geographical location, outstanding natural beauty and highly skilled workforce to attract and encourage investment.

The spotlight was also focused on innovation and the importance of businesses being encouraged and supported to harness cutting edge technology such as AI to drive growth and boost productivity.

The local authority has long recognised the need for new hotel accommodation in an area which attracts tens of thousands of visitors, injecting millions of pounds into the local economy annually.

And it has placed tourism at the top of its agenda and is striving to attract more international visitors to stay overnight across the district. 

The new £1m fund – which will be open to applications later this year – is seen as a key driver to significantly enhance existing hotel accommodation and make some of the best even better.

Previously, work started on a business case aimed at encouraging entrepreneurs to firm up proposals for new hotel developments in two of the district’s leading towns.

Part of the work included a survey to identify prime sites for potential new hotel developments in Downpatrick and Newcastle, with local council officials keen to work with the private sector to help land new multi-million pound developments.

The provision of new hotels in the district is one of the local authority’s main priorities as it aims to build on the area’s tourism offering.

Officials have also previously spoken with a number of hotel providers who expressed a tentative interest in new hotel developments in Newcastle, Downpatrick and Newry.

Developers have approached the local authority in the past to discuss new hotel investment, seeking information about planning issues and potential development sites.

Requests have also been made for details of the local authority’s tourism study and the potential of securing planning approval. 

Several years ago the local authority undertook a so-called accommodation study which outlined a series of recommendations around the district’s 

future needs, highlighting the need for new hotels in Newcastle and Downpatrick.

While the exact locations of potential development sites in Newcastle and Downpatrick were not made public at the time, the Annesley Buildings in Newcastle and former Abbey Lodge Hotel site in Downpatrick were identified.

Planning permission was subsequently sought for a new 51-bedroom, three-storey hotel at the Abbey Lodge site by a local businessman, but it was never developed.

Other potential hotel sites examined by a potential hotel investor included a site at the Downshire Civic Centre in the town, Down Council’s former Strangford Road headquarters and land at the rear of the Maxol station at New Bridge Street.

All three locations were subsequently deemed unsuitable.

Politicians say they recognise that new hotel investment and the expansion of existing tourism accommodation will create new jobs and boost the local economy.

They say enhancing bed space across the district can boost business confidence and potentially act as a catalyst for additional investment, helping create further additional job opportunities.

Politicians view new hotel investment and development opportunities as key economic generators which need to be encouraged with the new £1m fund the perfect foundation to help build future success.