Investor considering 68-bed resort hotel

Investor considering 68-bed resort hotel

1 August 2012 - by David Telford

NEWCASTLE could be in line for a new 68-bedroom hotel.

A potential investor has signalled an interest in acquiring the Annesley Buildings, which occupy a prime site in the heart of the resort, for the new development.

The Main Street property, which is one of Down Council’s most valuable assets, will be sold when the local authority completes work on a proposed new leisure centre in Donard Park.

News that Newcastle could have a major new town centre hotel comes as the council continues its drive to expand tourist accommodation across the district and confirmation that interest has also been shown in redeveloping the former Abbey Lodge Hotel site in Downpatrick.

Last year, the value of tourism to the local economy was valued at £156m and while that figure is expected to dip this year due to the current economic climate, council officials are continuing to plan for the future.

They say the district needs needs more bed spaces, particularly in Newcastle and Downpatrick and that talks with potential hotel investors will continue as tourism continues to be the district’s major success story.

Council chief executive, Mr. John Dumigan, said the local authority owns property in Newcastle which would be suitable for a new hotel.

“There is interest in the site for a 68-bedroom hotel which would provide the resort with a major boost. The provision of a new hotel would create much-needed jobs in the construction sector and jobs in the new building when it opens for business. What could potentially happen in Newcastle represents a substantial investment,” he added.

Council tourism official Mr. Mark Mohan said local authority staff have been proactive in identifying the people they need to talk to who could make new hotel developments happen.

“Newcastle is a prime site for tour operators and we need hotels of the scale that meets their requirements. It’s a very competitive market when it comes to securing new hotel investment and that means we have to box clever,” he continued.

Mr. Mohan said 24 international tour operators currently bring visitors to Downpatrick which is heavily promoted as a Christian heritage hub, but he admitted there is nowhere for them to stay.

“We face a major challenge to keep visitors in the town, but a new hotel would help us address that. There is investor interest in the former Abbey Lodge site and we will continue talking to people who could make things happen,” he said.

Mr. Mohan said there are almost 580 small to medium-sized business involved in tourism across the district, with 176 of those providing accommodation for visitors. He said last year 25 new business specialising in tourist accommodation started across the district.

He added: “Hotels are important, but not everyone wants to stay in them. Some people prefer bed and breakfast or self-catering accommodation and these particular businesses also play a crucial role at the heart of the district’s tourism offering which we want to expand.”