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Belfast Hospitality Group Faces Crisis Over Rate Hike

  //business-finance.news-articles.net/content/202 .. spitality-group-faces-crisis-over-rate-hike.html
  Published in Business and Finance on Tuesday, January 27th 2026 at 10:54 GMT by The Irish News
      Locale: Northern Ireland, UNITED KINGDOM

Belfast, Northern Ireland - January 27th, 2026 - A prominent Belfast hospitality group, HNH Group, is facing a severe crisis following a sudden and substantial GBP192,000 increase in business rates, a hike they describe as "shocking" and "unsustainable." The group, which owns and operates a portfolio of high-profile hotels and pubs including The Fitzwilliam Hotel Belfast, The Merchant Hotel, and the iconic Crown Liquor Saloon, has publicly voiced its concerns, warning that the drastic rate increase threatens the viability of their businesses and could lead to closures.

The unprecedented increase, as highlighted in a letter sent to Belfast City Council and other key stakeholders, has sent shockwaves through the local hospitality sector. HNH Group argues that the increase is not only financially debilitating but also questions the fairness and accuracy of the valuation process used to determine business rates. The group estimates the rate hike represents a roughly 10% increase in operational costs, potentially forcing them to significantly raise prices - a scenario they paint as particularly dire.

"We're devastated by this," stated John O'Dowd, Chairman of HNH Group, in a press release accompanying the letter. "The hospitality sector has endured an incredibly difficult period over the last few years. We've fought diligently to keep our businesses afloat, navigating the complexities of the Covid-19 pandemic and the ongoing cost of living crisis. However, this rates increase represents a level of financial strain that we simply cannot sustain."

The implications of the rate increase are significant. While the exact price adjustments will vary across the group's establishments, HNH Group suggests that the added cost could translate to a considerable increase in consumer prices. They specifically mentioned the potential for a pint of Guinness to reach as high as GBP17.20, a figure that underscores the extent of the financial pressure they face. This price hike, they fear, will further impact consumer spending and potentially damage the reputation of Belfast's vibrant hospitality scene.

A Perfect Storm of Challenges

The timing of the rate increase is particularly problematic. The hospitality industry has been struggling to recover from the long-term impacts of the Covid-19 pandemic. Ongoing global economic uncertainty and the persistent cost of living crisis have further eroded consumer confidence and disposable income, impacting spending on leisure and entertainment. Businesses like those in the HNH Group have been operating on thin margins, constantly striving to balance rising costs with the need to remain competitive.

The group's plea isn't for a subsidy or handout, but rather a reassessment of the valuation methodology and a subsequent reduction in their rates liability. They maintain that the current valuation doesn't accurately reflect the realities of their business operations and the broader economic challenges facing the hospitality sector.

Legal Action and Future Prospects

In a firm demonstration of their resolve, HNH Group has indicated they are prepared to pursue legal action if their concerns are not addressed and a fair resolution is not reached. "We're not going to stand by and watch our businesses close," O'Dowd emphasized. "We're committed to protecting the jobs of our employees and the livelihoods of our communities. We will fight for a fairer system."

The situation serves as a stark reminder of the precariousness of the hospitality sector and the significant challenges businesses face in navigating economic headwinds. The case is likely to draw increased scrutiny on Belfast City Council's valuation process and its impact on local businesses, potentially prompting a wider review of business rates policies across Northern Ireland. The outcome of HNH Group's appeal could have significant repercussions for other businesses in the city and across the region, highlighting the need for a balanced and sustainable approach to economic development and support for vital industries.