| 8°C Belfast

Belfast aparthotel signs 25-year lease with London tenant


Leased: The new aparthotel on Belfast's Queen Street

Leased: The new aparthotel on Belfast's Queen Street

Leased: The new aparthotel on Belfast's Queen Street

A new 175-unit Belfast aparthotel due to be completed in 2021 has secured a long-term tenant.

The nine-storey Oakland Holdings property on Queen Street will be leased by room2 hometels, backed by Lamington Group.

The deal is a vote of confidence in Northern Ireland tourism at a time when the sector has been badly hit by the effect of coronavirus.

Room2 hometels offers "home-from-home accommodation" with perks such as mattress menus.

The aparthotel achieved full planning permission in September 2019. Developer Oakland Holdings has produced Grade A office space and residential, retail and hospitality property.

The building is made up of 175 guest units with food and beverage facilities at ground floor level and meeting and conference facilities at first floor level. Property agents CBRE Hotels and A&L Goodbody, solicitors, acted for Oakland Holdings in the transaction.

Robert Godwin of the Lamington Group said: "We are delighted to be expanding and introducing our concept to the Belfast market which is maturing and changing at a very fast pace.

"This development ticked all our boxes in terms of its location, its modern and contemporary design and its turnkey specification."

Guy Hollis of Oakland Holdings said: "The Lamington Group were a perfect fit for the development as we were able to accommodate their high-end, design led specifications and provide them with the necessary flexibility while at the same time securing a strong and institutionally accepted covenant at a market rent."

The terms of the agreement of the deal include a 25-year lease with a tenant option to break at year 20.

It is expected that work on the building will start soon to give way to 175 units varying in size from 21 sqm to 25 sqm as well as larger units.

John Ryan of CBRE Hotels said the location and design detail of the development had appealed to a wide variety of hotel and aparthotel operators.

All hotels in Northern Ireland, apart from those offering accommodation to NHS workers or recovering patients, have been closed since the lockdown.

According to a survey last month by the NI Hotel Federation, 90% of staff at hotels have been laid off or furloughed. Further research by Tourism NI said the impact of Covid-19 would be severe on 79% of tourism businesses.

Belfast Telegraph