Newcastle could be in line for boutique hotel

Newcastle could be in line for boutique hotel

2 July 2025

NEWCASTLE could be in line for a new town centre boutique hotel.

St Vincent de Paul — which owns the 19-bed Clare Lodge facility in Main Street — has placed the extensive property on the market.

Valued at £1m, the property is viewed as a perfect investment opportunity for a new town centre hotel and is expected to spark a wave of interest.

Initially opened in 1979, Clare Lodge was demolished and rebuilt and opened in 2016, with the modern building offering spectacular views of the Mournes, Dundrum Bay and large parts of the town centre and surrounding area.

The building also has three ground floor commercial units which formerly housed a restaurant but they are currently empty and also available as part of the sale.

St Vincent de Paul has confirmed Clare Lodge, which has 19 ensuite bedrooms and been closed for five years, has been placed on the market for sale.

“Any proceeds from the sale of the property will be used in the northern region to help alleviate poverty,” a charity spokesperson confirmed.

Clare Lodge offered respite breaks for those experiencing the worst of the troubles, but the residential facility has been closed since the start of the Covid-19 pandemic and was last week put up for sale.

In addition to the 19 bedrooms, there is also a dining room, lounge and reception hall and fully fitted kitchen.

Selling agents UPS have described the building as a “substantial and modern commercial premises” in the heart of Newcastle which is “perfectly positioned with breathtaking views of the Mournes Mountains and Irish Sea”.

A sales brochure says the “versatile property offers immense potential for investors, hoteliers, or developers seeking a landmark building in one of Northern Ireland’s most desirable coastal towns”.

Each of the 19 bedrooms have been fully furnished and finished to a modern standard, offering comfort and privacy for guests, according to the brochure.

Aaron Ferris from UPS said the property has drawn interest from three parties after being on the market since early last week.

“It’s perfectly set up for a boutique hotel with 19 bedrooms, all en suite, and a lot of them are family rooms, with a lot having sea views,” he said.

“There’s a commercial element with three commercial units that were knocked into one and operated as a separate restaurant – but it would be very easy to have a bar or restaurant in it as part of a hotel in future.”

Mr Ferris said “you couldn’t built it any better than it is already for use as a hotel” and revealed Newcastle was busy with other commercial units on the market attracting strong interest.

He said an investment property on Central Promenade with a cafe and Medicare pharmacy on the ground floor and apartments above it, which is on the market for £730,000, had drawn offers for £610,000.

“There’s a lot of viewers waiting in the wings before closing bids in July,” he said.

Earlier this year, details of a £1m fund to help secure new hotel investment across the district was announced 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 at the district’s premier Slieve Donard Resort hotel in the resort which highlighted opportunities connected to upcoming multi-million pound public and private sector investments across the district in tourism, regeneration, infrastructure and digital innovation.

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.