REVAL 2026 Results Raise Serious Concerns for Hotels and Accommodation Sector
The NI Hotels Federation (NIHF) has said that the results of REVAL 2026 were released today by Land & Property Services, Department of Finance, providing businesses with their first sight of new Net Annual Values (NAVs).
This Net Annual Value (NAV) figure will be used to calculate rates from 2026 until the next revaluation.
This information was originally due to be published in November but was delayed until today, Thursday 22 January.
The NIHF indicated that the delay is particularly disappointing given the scale of the increases now being proposed, which will require careful and immediate budgeting by businesses.
Hotels across County Down and Northern Ireland will be impacted by the late rates’ evaluations.
The NIFH added that position for the hotel and wider accommodation sector is especially challenging. Following Covid, hotels were supported through a rates discount to aid recovery and address the uniquely difficult trading conditions faced by the sector.
That support has now been withdrawn, and its removal will have a profound and damaging impact on businesses.
Overall, the sector is facing an 83% increase in valuations, reflecting both the reversal of Covid support and the increased NAVs arising from REVAL 2026.
The average increase for hotels is 63%, with a significant number of businesses experiencing even higher rises, taking into account material changes in their trading since the last valuation.
Janice Gault, Chief Executive of the Northern Ireland Hotels Federation, said: “While turnover has increased, it has not kept pace with the very significant rise in operating costs.
“In 2025, room rates softened alongside occupancy levels, and escalating costs can no longer be absorbed by businesses alone. These pressures inevitably risk being passed on to the consumer.
“Hotels are acutely aware of the need to deliver value for money, but the sector is now being forced into an increasingly untenable balancing act.”
NAV calculations are largely based on turnover and fail to adequately reflect the substantial increases in costs experienced by the sector in recent years. In addition, the rate poundage set by local councils and the Department of Finance has yet to be confirmed and is also expected to rise, further compounding the impact on businesses.
Rates are a devolved matter, and the delay in communicating this critical information is deeply concerning. It has made forward planning and budgeting extremely difficult, particularly with new rates bills due to be issued in April.
The hotel and accommodation sector currently contributes over £13 million in rates annually, a figure that is expected to rise to circa £25 million or more under the proposed new NAVs. Regional and district council poundages have yet to be agreed, adding further uncertainty.
Janice Gault added: “There is a growing perception that the pressures facing the hotel, accommodation and wider hospitality sector are not fully understood.
“Many businesses feel they are being treated as a convenient source of revenue, with insufficient regard for rising costs, the need for ongoing reinvestment, or long-term sustainability.
“The sector’s success is being actively penalised through a short-sighted approach to an industry that has invested around £500 million since the end of the pandemic, demonstrating confidence, resilience and long-term commitment. “
The NIHF says industry is calling on the Assembly to recognise the true economic value of the sector and to reflect this by moderating the scale of the proposed increases.
The tourism ecosystem is complex, highly sensitive to inflation, global trends and external shocks, and requires sustained investment to remain competitive.
While the sector remains committed to supporting the local economy, there is now an urgent need for a more balanced and equitable approach to rates, and for meaningful action to mitigate the impact of these substantial increases before lasting damage is done argues the NIHF.
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Land & Property Services publishes draft valuation list for Reval 2026
Land & Property Services (LPS) has released the draft valuation list for non‑domestic properties as part of Reval 2026.
LPS is encouraging businesses to view the draft list which will be used to calculate business rates from 1 April 2026.
Business rates apply to most non‑domestic premises, including shops, offices, warehouses, factories, hotels, pubs and utilities such as gas, water, electricity and wind farms.
Non-domestic rates generate around £720million a year. As part of Reval 2026, LPS has revalued more than 75,000 properties.
Revaluations are based on market evidence and reflect the rent a property could reasonably be expected to achieve on a specific date. Overall, the draft list shows an approximate 15% increase in the total value of non‑domestic properties across Northern Ireland since the last revaluation was carried out.
Revaluations do not raise additional income; regional and district rate poundages are adjusted to maintain revenue‑neutrality.
Angela McGrath, the Commissioner of Valuation for Northern Ireland, said: “Reval 2026 is about ensuring that rates are distributed fairly based on current rental evidence.
“Businesses are currently paying rates based on rental levels that reflect the economic and market conditions during the pandemic in October 2021. Reval 2026 updates this position by using more up‑to‑date rental evidence from April 2024.
“The majority of non‑domestic properties are expected to see little or no change in their rates liability.
“I would encourage ratepayers to go online to review the new valuation to be applied to their property and that of similar properties. LPS will review any new or relevant information ratepayers wish to bring forward now and make updates where appropriate before the new valuation list takes effect in April 2026.”
The outcomes of the revaluation include:
- Overall growth in the valuation list of 15% across all property sectors.
- Office values have increased overall by around 9%, driven largely by growth in Grade A offices concentrated in Belfast.
- Across Northern Ireland, retail property values have increased overall by around 9% compared to Reval 2023, with stronger growth in Belfast and more moderate uplifts elsewhere. Many independent high street retailers will see no change in their NAVs.
- Strong demand from logistics and manufacturing, coupled with limited modern supply, has driven industrial and warehousing rents upward, resulting in an overall sector increase of around 16%.
- During the previous revaluation, the hospitality sector was significantly impacted by the pandemic, resulting in lower rateable values as at the valuation date. While some hospitality businesses will see a decrease in their valuation in Reval 2026, the majority will see a substantial increase due to factors such as improved conditions post-pandemic, expansion and improvement work to premises. This results in a wide degree of variance in the sector.
Although the Revaluation is revenue neutral overall, individual rate liabilities will shift. This means that a percentage increase in a property’s value will not lead to a rate bill rising by the same percentage. That is because poundages will be adjusted ahead of the rate bills issuing and will take account of the growth in property values at Reval 2026.
Typically, properties that have seen above average increases in their value will likely see their overall rating liability increase, resulting in a higher rate bill. Approximately 67% of properties, meanwhile, are at or below the increase of 15%.
Around 75% of non-domestic properties are currently entitled to some form of rate relief through schemes provided by the Department of Finance, through Land & Property Services, amounting to around a quarter of a billion pounds worth of relief.
A current consultation for enhancements to the Small Business Rate Relief scheme, which currently supports around 30,000 of the 75,000 non-domestic properties, is also currently ongoing and proposals will take account of the changes to the valuation list resulting from the Reval 2026 process.
To view the 2026 Draft Valuation List, query a valuation or submit information, go to:
www.finance-ni.gov.uk/services/ni-reval2026-draft-valuation-list
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