Budget hotels set to open in city

An economy hotel has opened on Castle Street in Belfast

Two new hotels are to open in city centre locations in Belfast.

On Thursday, the Ibis economy hotel chain opened a 124-room hotel on Castle Street. Another 56-room hotel on University Street is to open soon.

Despite becoming an attractive destination for city breaks, a report earlier this month said rates for hotel rooms in Belfast had fallen by 25%.

PricewaterhouseCoopers said falling visitor numbers and an influx of new hotel openings had taken their toll.

Speaking at the opening of the Castle Street premises, Enterprise Minister Arlene Foster said the hotel market in Belfast had not reached its saturation point.

"There is room for this sort of accommodation and that's why I'm here to very much welcome it," she said.

However, Janice Gault, of the Northern Ireland Hotels Federation, said hotel rates had fallen across the city.

"There have been two drivers in that, one is an increase in the budget market and the other is the general downturn in what people are prepared to pay," she said.

The Ibis franchise has been brought to Northern Ireland by Belfast-based property development and hospitality company, Andras House.

Lord Diljit Rana, chairman and chief executive of the company, said they intended to build five new hotels in Northern Ireland in a £50m programme over the next few years.

"We are going into areas where other people thought it was unwise," he said.

"This is a great city centre location and it will be the first project that will revitalise this part of the city."

Ibis hotels are part of the French-owned Accor Group.

The 56-room property on University Street was formerly Renshaw's Hotel.