Council makes £1m available in grants for new local hotels

Council makes £1m available in grants for new local hotels

14 February 2024

POTENTIAL hotel developers keen to invest in the area are being offered a slice of a £1m funding cake being made available by Newry, Mourne and Down Council.

A capital grant scheme was initially approved in 2020, but no money was handed over as the Covid pandemic struck, sweeping across the globe and having major ramifications for the local authority and its staff.

Developers who secure planning approval for new hotels with up to 30 bedrooms can apply for financial assistance up to a maximum of £300,000 under the new grant scheme.

It was confirmed this week that council officers are currently updating the application documents and a publicity campaign around the new scheme is also being devised and due to be launched in May.

Once the grant scheme goes live, council officials will engage with the private sector to address queries from any prospective applicants.

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.

Members of the local authority’s Economy, Regeneration and Tourism Committee were told of the £1m grant scheme at their monthly meeting Monday night.

Several years ago, plans for a new 51-bedroom hotel for Downpatrick — which has not been developed —  were unveiled for the former Abbey Lodge site at the Belfast Road on the outskirts of the town.

It was to feature a bar and restaurant, alongside a range of leisure facilities including a swimming pool and health spa, and finished in stone and slate.

The 6,400 square metre development was to comprise function rooms and a health spa, including  a 15 metre by seven metre swimming pool, alongside a jacuzzi and sauna. Changing facilities, a gym and fitness rooms also formed part of the ambitious proposal.

The planned hotel would have featured a bar and restaurant capable of accommodating up to 120 people and reception area in front of a landscaped courtyard. 

Other aspects of the proposed hotel included two conference rooms, with the accommodation including family rooms, and parking for 182 vehicles, alongside an area for coaches.

Downpatrick Sinn Fein councillor Philip Campbell has welcomed the £1m fund.

He said his party has ambitions plans to grow quality tourist provision across the district and it is welcome that the local authority shares this vision.

 “The new fund will provide support towards the creation of new hotel accommodation and it is anticipated the scheme will go live in May,” he said.

“The fund will support initiatives that will cater for hotel projects with a minimum of 30 rooms with existing planning permission.”

Cllr Campbell said his party will continue to work hard to develop new tourism opportunities that will increase overnight stay provision, boost our local economy and create more employment opportunities.”

Former Downpatrick councillor Dermot Curran has for many years been keen to see a new hotel in the town.

Mr Curran said a new hotel had the potential to create jobs in the construction industry and provide employment in the hospitality sector.

He said the local council’s tourism strategy was designed to make the district a prime tourist destination in Ireland and that more visitors will require additional overnight accommodation.

“Hotels are popular destinations for weddings and dining and are also used by many organisations to host conferences and can provide training and employment opportunities for young people,” he remarked.

“A new hotel can have a positive impact on the entire district and the surrounding area.

“There is a need for additional overnight accommodation across the district and news of the local council’s £1m grant scheme to assist developers is welcome.”

Mr Curran added: “I’m a firm believer that new investment creates new opportunities and we are very fortunate to have leading hotels across 

our district, but increasing visitors means additional accommodation is required.

“It’s important to plan for the future and ensure when people come to our district they have somewhere to stay.”