Finance Minister Visits Two New Hotel Developments In Belfast

Finance Minister Dr Caoimhe Archibald has visited the sites of two new hotel developments that have benefitted from a £150 million investment fund managed on behalf of her Department.

The Aloft & Residence Inn by Marriott in Hamilton Dock and Room2 in Belfast have been supported by the NI Investment Fund, a fund providing debt or equity finance for commercial property, regeneration and low carbon projects. The fund is managed by the CBRE Lending team on behalf of the Department of Finance.

The Aloft and Residence Inn by Marriott hotel, located at the Hamilton Dock site in Belfast's Titanic Quarter, received the NIIF's largest loan, providing £28million in support. Once completed, the 228-room hotel/aparthotel will support 85 full time jobs.

Room2, which opened in late 2023, secured £11.6million of support and is Belfast's first Low Carbon Hometel running on 100% electric and low carbon renewable energy. It has a zero waste to landfill policy.

Minister Archibald said: "A key target sector for this investment fund is the hotel and leisure industry and I was pleased to visit two of the hotel projects being supported in Belfast. As the number of visitors here increases, so does the demand for accommodation. The tourism industry is vital to the local economy helping to support jobs and services and boosting expenditure.

"Responsible and green investment is a priority and the fund supports carbon efficient occupational space and renewable energy generation. Both of the developments I visited today have strong environmental credentials, making them amongst the greenest hotels on the island.

"The Investment Fund is an innovative way of using financial transactions capital to invest in long-term transformation, supporting economic development growing the low carbon economy and tackling regional imbalance. I would encourage all project developers to check the fund's criteria to see if they are eligible for support."

Will Church, Executive Director, CBRE, added: "Impact Funds such as the NIIF aim to lend in circumstances where access to finance is the key barrier and when other lenders aren't willing or able to, despite the underlying project being viable. We know how crucial the tourism industry is to the local economy in Belfast, however since the pandemic and with a backdrop of rising interest rates, debt liquidity and the viability of new hotel developments have become increasingly constrained. Both projects exemplify the purpose of the Fund, in facilitating strategic and locally important development projects that support job creation, regeneration, and a low carbon economy, as well as showcasing the opportunity that exists for local businesses with projects that meet the criteria."

Zain Kajani, Director at JMK, who will own and operate The Aloft and Residence Inn, also said: "We are pleased to have the funding in place and break ground at the JMK group's first hotel in Northern Ireland, adding further depth to our hotel portfolio in the UK and Republic of Ireland, and aligning with our expansion strategy and forward-thinking approach to drive sustainability. The hotel/aparthotel will be branded Aloft & Residence Inn by Marriott. The combination of the international brand and the asset being in a prime location in front of the Titanic Museum, which is Belfast's number one tourist attraction, will ensure the hotel & aparthotel have a bright future ahead.

"Furthermore, the asset will be one of the greenest hotels in Northern Ireland with BREEAM 'Excellent' and LEED 'Gold' credentials aligning with the group's sustainable strategy. The financing from the Northern Ireland Investment Fund and approach by CBRE were crucial to ensuring the successful delivery of this project."

Oakland Holdings built the Room2 hotel on Queen Street in Belfast and Chief Executive Gareth Graham welcomed the Minister on site.

He said: "We researched the hometel concept in other major cities and believed that there would be a local demand here in Belfast for this unique offering which combines the flexibility of home apartment living with the features of a hotel. Although the hometel only opened in October last year it is already a firm fixture in the Belfast hospitality scene and is regularly booked out. The Northern Investment Fund played a major role in delivering this project, as the key funding partner."