£28m loan to support new hotel development in Titanic Quarter

Artist impression issued by CBRE of the new proposed hotel. Credit: PA

A £28m development finance loan has been provided by the Northern Ireland Investment Fund to facilitate the development of a new hotel in Belfast’s Titanic Quarter.

The fund is managed by the lending team at CBRE and the loan will be delivered to the JMK group.

The Hamilton Dock site will comprise a 228-bed hotel near the Titanic Exhibition and SSE Area and will deliver an estimated 130 jobs – including 60 jobs during the construction phase and 70 full-time jobs in the operational hotel.

The NIIF recently increased in size from £100m to £150m, with the Hamilton Dock Hotel loan marking its largest loan since its inception.

Herbin Duffield, director at CBRE said: “When the Northern Ireland Investment Fund (NIIF) launched in 2018 there was sufficient debt liquidity and supply of new hotel developments in Belfast.

“The pandemic and rising interest rates have tested those conditions, and supply and debt liquidity is now more constrained.

"NIIF is addressing market failure and providing debt funding that will create jobs in a key regeneration area in the city’s Titanic Quarter by delivering a hotel with strong environmental and sustainability credentials.

“Having explored a range of funding options and solutions for this site, we are delighted to have committed a loan facility to finance the delivery of this project.”

Zain Kajani, director at JMK added: “We are pleased to have the funding in place and break ground at the JMK group’s first hotel in Northern Ireland, adding further depth to our hotel portfolio in the UK and Republic of Ireland, and aligning with our expansion strategy and forward-thinking approach to drive sustainability.”

Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To Know.