NI hotels go green for sustainable success
How NI hotels are checking in for sector’s sustainable journey
By Brian Lavery, Managing Director, CBRE NI, and Alex Speers, Associate Director, CBRE Hotels
The hospitality sector in Northern Ireland is rapidly adopting Environmental, Social, and Governance (ESG) principles, positioning itself as a leader in both sustainability and trading success. In 2024, the sector not only recorded impressive trading figures growth but also made significant progress in adopting green practices, essential for the hospitality sector’s long-term profitability and reputation.
The hotel industry in Northern Ireland experienced strong growth in 2024, with June marking a record for both Average Daily Rate (ADR) and Revenue per Available Room (RevPAR). Year to date August 2024, RevPAR grew by over 9% compared to the same period in 2023. While hotel trading continues to thrive, operators are also focusing on sustainability to meet growing demands from both corporate and leisure guests.
At the forefront of this sustainable movement is Room2 Belfast, which opened in October 2023. The aparthotel runs on 100% electric and low carbon renewable energy. It offsets carbon emissions throughout its entire lifecycle, from construction to daily operations. With an EPC rating of A21, Room2 is one of the most energy-efficient hotels in Northern Europe. It has earned a Green Tourism Gold Award and awaits WELL Platinum certification.
In addition to its impressive green credentials, Room2 features two ‘lab rooms’ that provide real-time data on energy use, water consumption, and air quality, demonstrating how data-driven innovations can significantly reduce a hotel’s environmental impact.
Beyond Room2, other hotels across Northern Ireland are also making strides in environmental sustainability. The Galgorm Collection has set a goal to achieve carbon neutral status by 2030, implementing initiatives focused on energy efficiency, waste reduction, and biodiversity. In November 2023, the Galgorm Resort earned a Green Tourism Gold Award.
Andras House, the largest hotel operator in Northern Ireland, has also taken significant steps towards sustainability. All hotels in its portfolio have achieved Green Tourism certification, with initiatives focusing on reducing energy consumption, improving waste management, and integrating sustainable procurement practices to further reduce their environmental footprint.
ESG principles also emphasise social responsibility and governance. Northern Ireland hotels are engaging with local communities, supporting local suppliers, and improving employees’ well-being. The Hastings Hotels Group has developed a bespoke sustainability training programme for staff, empowering them to take a proactive role in the company’s green initiatives.
On the governance side, Galgorm Collection has created a Sustainability Committee to oversee its environmental and social programmes, ensuring that they align with broader business goals and benefit employees, guests, and the community
Corporate clients are increasingly booking hotels that align with their own ESG goals, making sustainability a business imperative. Hotels’ commitment to sustainability will make these properties more attractive for corporate events and stays. While leisure travellers are not yet as focused on sustainability, demand is expected to grow in the near future as environmental awareness increases.
From an investor’s perspective, ESG is becoming an important aspect as part of their due diligence and underwriting when assessing acquisitions. This is particularly the case with some of the institutions that have very specific goals on the makeup of their portfolio, with a focus on A rated properties. As part of CBRE’s sale process, we ensure that a detailed ESG assessment forms part of our technical due diligence material, which is shared with prospective purchasers.
Northern Ireland’s hotel sector is leading by example, showcasing how ESG strategies can enhance both profitability and sustainability. With trailblazers like Room2 Belfast setting new standards and groups like Andras House, Galgorm Collection and the Hasting Hotels Group committing to green practices, the region is positioning itself as a leader in the future of hospitality. Smaller operators can also benefit by adopting eco-friendly practices, helping the entire sector thrive in an increasingly eco-conscious market.
