£1m hotel investment

£1m hotel investment

17 September 2025

A £1m funding pot is being made available for potential hotel developers keen to invest in the area.

Newry, Mourne and Down Council is putting up the cash as part of an innovative new scheme designed to stimulate hotel development across the district.

The scheme is a key ingredient in the local authority’s tourism strategy, which seeks to attract a greater international market, encourage longer visitor stays and increase overall expenditure and economic output within the local economy.

The local authority says it’s essential that additional overnight stay accommodation is provided across the district and that for this to happen, new quality development is needed.

Details of the new funding package were announced on Monday with council chairman Philip Campbell highlighting the district’s abundance of rich cultural heritage, outdoor adventure experiences, locally crafted artisan food and drink, world class golf and a vibrant calendar of events and festivals. 

He said that to capitalise on this quality offering and encourage a greater number of people to stay longer within the district to spend locally, the so-called hotel development grant scheme will play a vital role in increasing capacity, ultimately boosting our local economy.”

The local authority’s tourism strategy has identified a shortage of hotel accommodation as a barrier to growth in the visitor economy. 

And while the district attracted 1.245 million overnight stays last year, the lack of sufficient bed spaces, particularly in hotels, has limited the potential to maximise overnight stays and visitor spending.

The council hopes that via the new scheme, it will collaborate with private sector partners to address this challenge. 

Funding will be available to support the creation of new hotel accommodation within the district and the expansion of bed capacity in existing hotels. 

In addition, the scheme will welcome applications from businesses and developers who are interested in investing in new or expanded hotel facilities. 

Applicants must be trading for at least three years and their proposals must be for the creation of at least 15 bedrooms with a rating of three stars or above. 

Over the coming weeks, the local authority will be hosting two -in sessions and an online workshop to provide further details on the application process. 

The drop-in information sessions will take place next Tuesday between 10am and noon in the Downpatrick Civic Centre, with interested parties able to join an online session on September 30 from 1pm to 2pm. 

News of the grant scheme comes just over two months after an ambitious plan was unveiled to build a 54-bed boutique hotel as part of the redevelopment of Downpatrick’s former police base in Irish Street.

Concept designs for an exciting multi-million pound development which includes a number of adjacent, empty buildings and car park were unveiled in July.

Draft designs — which have been drawn up by specialist consultants — include 10,000 square feet of retail space and a private apartment block, with developers due to be asked to submit bids to carry out the work in September.

The proposal by the Downpatrick Regeneration Working Group has been described as a “transformational” town centre project, work is underway to provide financial assistance to a preferred bidder by way of grant support.

The Irish Street scheme is being spearheaded by the regeneration group in partnership with the Department for Communities and local council.

The Irish Street redevelopment is the regeneration group’s flagship project but it will take a number of years to complete and is part of an ambitious masterplan which covers the Irish Street frontage, with the proposed 54-bed boutique type hotel extending to the back of the site, with plans for

10,000 sq ft retail space and potentially new apartments.

Details of the local authority’s hotel development grant scheme, including the criteria, applicant guidance notes and the information sessions are available on the council’s website www.newrymournedown.org/hotel-development-grant-scheme.