Killowen Contracts has commenced construction on the £20 million (€23.2 million) conversion of the former Beaufort House office building on Wellington Place, Belfast, into Northern Ireland's first Staycity aparthotel, as reported by Premier Construction News. Developer Lotus Property is leading the project, with funding provided by Danske Bank, and the 98-key development is scheduled to open in May 2027.

The scheme transforms the nine-storey, 46,000 sq ft former Beaufort House into a mix of studio and one-bedroom apartments alongside guest amenities including a gym, reception, bar, restaurant and retail space. Belfast has been selected by Dublin-headquartered Staycity Group as the launch city for its new brand concept, making it the first location to showcase the operator's refreshed design vision across its 36-property portfolio.

Alastair Coulson, managing director at Lotus Property, said: "We're delighted to see work underway on this important city-centre development, which reflects strong confidence in Belfast's continued growth. Between the completion of Belfast Grand Central Station bringing more commuters than ever before into the city and major tourism events, concerts and attractions, Belfast city centre is thriving and poses a huge opportunity for short-term accommodation offerings to be successful."

Brian McGovern at Killowen Contracts said it had been fantastic to begin construction on a landmark project in the centre of Belfast, adding that the team looked forward to working closely with Lotus Property and Staycity on the active repurpose to deliver a high-quality aparthotel ready to welcome guests in 2027.

Danske Bank's involvement provides the development with institutional funding backing. A spokesperson for the bank said it was pleased to support Lotus Property with a project that combined a strong operator, a prime location and a clear long-term vision for growth, while also supporting local construction, tourism and hospitality employment.

The Wellington Place site was originally occupied by HMRC offices before Lotus Property secured the building for redevelopment. Sonder was originally set to operate the site before withdrawing from the project in 2024, with Staycity subsequently appointed as operator. The conversion model reflects a broader shift in urban commercial property repurposing across Belfast and other UK cities, as redundant office stock is increasingly repositioned for hospitality and residential use to meet demand in city centre locations where new-build viability remains constrained.