Hastings Hotel Group has announced a £12 million capital investment programme for the Stormont, Europa and Culloden hotels. Around half the investment in the Belfast hotels will be spent on a new accommodation block at the Europa, including 56 new air-conditioned bedrooms. Another 28 bedrooms are to be added to the Culloden, along with state-of-the-art kitchens. The investment includes building a new reception and meeting area at the Stormont Hotel in east Belfast, at a cost of around £2.5 million.

Managing director Howard Hastings said that the investment was a major vote of confidence in the potential of the local hospitality market.

"The 56 bedrooms at the Europa will bring the number of rooms to 240," he said. "This will make it the biggest hotel in Northern Ireland, and the third biggest on the island of Ireland."

Mr Hastings said that the building of the new 11-storey accommodation block was essential if the group was to meet the increasing demand.

Work at the Stormont Hotel is expected to be finished in November, with the new accommodation at the Culloden due for completion in early 2001.