Sumer Annual Hotel Industry Survey reveals that in 2023, over 2.31m hotel bedrooms were occupied in the six counties, a 10.5pc increase from 2022, signalling strong growth post-COVID.
Bedroom letting rates reached a record high in 2023, averaging £134.32 per room, with overall income per available room also hitting a new high of £92,314.
Corporate bookings irose, accounting for 10pc of bedroom bookings in 2023 compared to just 4.1pc in 2022, while special events and group stays also saw an increase.
While there were challenges such as rising operational costs and staffing issues, the hotel industry had a successful year in 2023, especially in Belfast and Derry, although rural hotels did not experience significant improvement in demand.
Adrian Patton, Director at Sumer said: “The industry continues to make strong progress in the wake of the pandemic. Demand for accommodation is on an upward trajectory and while overall bedroom bookings still lag behind the high watermark of 2019, improved room rates mean that income from the sale of bedrooms is the highest on record. So, too is income from other hotel services so when looking at overall revenues, the industry has performed very well.
“As we know, the hospitality industry has faced huge adversities of late with rising overhead costs alongside the attraction and retention of staff. With this in mind, when we look at the levels of earnings – before interest, depreciation and tax – as a percentage of revenues, the ratio of 20.4pc for 2023 is on a par with the 21.0pc recorded in 2022 and 18.9pc in 2019.
“It is also worth noting that the improvement in revenues was not uniform. Demand for rooms in rural hotels did not improve materially when compared to 2022, whereas in Belfast and Derry/Londonderry, there was a significant increase in the number of bedrooms occupied.
“On balance, the report shows a very good year for hotels in the region but ongoing challenges around operational costs, staffing, the removal of support for business rates and a high rate of VAT means that hotel managers continue to face a range of obstacles.”
