Saturday, 04 October 2025
AIB has provided £12.25 million in funding to Oakland, the developer behind room2 Belfast, one of Europe’s greenest aparthotels. The significant refinancing deal underscores a shared ambition between AIB and Oakland to accelerate sustainable development in Northern Ireland. The Role of Aparthotels in Sustainable Travel Aparthotels, like room2 Belfast, combine the flexibility of self-catering accommodation […]
AIB has provided £12.25 million in funding to Oakland, the developer behind room2 Belfast, one of Europe’s greenest aparthotels. The significant refinancing deal underscores a shared ambition between AIB and Oakland to accelerate sustainable development in Northern Ireland.
Aparthotels, like room2 Belfast, combine the flexibility of self-catering accommodation with hotel services. Compared to traditional hotels, they tend to have lower energy and water consumption per guest, especially when guests stay for longer periods. This makes them inherently more resource-efficient and well-suited for sustainability-minded travellers.
As global travellers become more eco-aware, the aparthotel model is well-positioned to offer the comfort of home alongside visible environmental accountability, like smart energy systems and waste reduction practices. room2 Belfast is helping redefine this category by marrying convenience with credible sustainability standards.
The funding reflects AIB’s strategy to support commercially strong, environmentally conscious projects. In this case, the backing of room2 Belfast supports a landmark building that combines financial viability with industry-leading sustainability credentials.
Seamus McGuckin, Head of Corporate Banking Northern Ireland at AIB, said:
“AIB is committed to playing a key role in advancing sustainable development and supporting clients who share that ambition. Oakland has demonstrated real leadership in delivering a building that is both commercially strong and one of the most sustainable aparthotels in Europe.”
Located in Belfast, room2 operates as a 100% electric building powered entirely by renewable energy. The aparthotel has been internationally recognised with multiple certifications, including:
WELL Building Standard – Platinum
Energy Performance Certificate (EPC) – A Rating
Green Tourism – Gold Award
B Corp Certification
These accolades position room2 Belfast at the forefront of eco-conscious hospitality in Europe. Buildings with strong ESG profiles are increasingly seen as lower-risk, higher-value assets. They are more resilient to regulation (like carbon taxes or performance-based codes) and are likely to remain competitive in an evolving market. This makes green financing, like the room2 Belfast deal, a smart bet for lenders.
Oakland CEO Gareth Graham noted:
“At Oakland, sustainability is not an afterthought, it is central to everything we do. room2 Belfast is a clear example of how we can deliver a commercially successful development while also setting new standards for environmental performance. We are pleased to have partnered with AIB, whose commitment to funding green and future-focused projects is fully aligned with our own vision for innovation and sustainability in Northern Ireland.”
Projects like room2 Belfast aren’t just about green innovation, they’re part of a broader effort to regenerate city spaces, create jobs, and boost urban vibrancy. Integrating sustainability into city infrastructure helps position Belfast as a forward-thinking capital in a global context.
As Belfast and other cities in Northern Ireland seek to meet net-zero targets, room2 Belfast acts as a live example of what low-carbon urban redevelopment looks like in practice. Its success could influence future planning guidelines, zoning incentives, and investment policies.
Oakland, under Gareth Graham’s leadership, has become known for pioneering sustainable commercial property in Northern Ireland. The company previously delivered Merchant Square, the largest single-let commercial property deal in Northern Ireland, now serving as PwC’s main UK headquarters outside London. Merchant Square has won RICS and CEF awards and holds a BREEAM Excellent environmental rating.
The refinancing package for room2 Belfast was arranged by Radius Corporate Finance. Director Brian Loughan commented:
“After we managed a competitive process during Spring 2025 involving more than 20 possible lenders, AIB was selected to be funder for the refinance. We worked closely with AIB to deliver a very competitive and tailored proposition which is reflective of the values of both Oakland and AIB.”
The successful delivery and financing of room2 Belfast sets a benchmark for future developments, showing how commercial real estate can meet the highest environmental standards without compromising financial viability.
As Northern Ireland continues its journey toward a low-carbon economy, projects like room2 Belfast, and the institutions that back them, will play a vital role in shaping a sustainable future.
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