The operator of Newport’s Mercure hotel says the city has never seen the conference boom it was promised from ICC Wales – and claims the gap between forecasts and reality is now threatening the future of a key regeneration project.
Andrew McCarthy, director of Garrison Barclay Estates, told the Argus the original business case for Chartist Tower assumed the International Convention Centre at Celtic Manor would generate around £1.1m a year in overflow income for the hotel. Instead, he says ICC‑linked bookings last year brought in just £38,000.
Carter Jonas, in a 2024 report prepared for Garrison Barclay and submitted to Newport City Council, said the underperformance of the ICC had been a significant factor in the hotel’s revenues falling well short of projections.
Read more
Newport’s flagship city‑centre hotel could close amid bitter council rent dispute
What a huge £16bn in new investment could mean for Newport’s economy in the future
Newport’s city centre revival plan faces test of trust and delivery
£1m International Convention Centre Wales contract aluminium firm
Chartist Tower hotel regeneration given £2million worth of Welsh Government funding
Their analysis shows total hotel revenue around £3.3m against earlier forecasts of more than £4.7m by year three, with profits before rent and financing far below the £1.1m to £1.2m originally expected.
Mr McCarthy says the hotel now runs at 80–100 per cent occupancy most nights but at room rates of around £60–£70 a night, far below what a four‑star city‑centre hotel would normally charge in a thriving conference destination.
“We’re full because we’re cheap, not because Newport is a high‑demand city,” he said, arguing that without a strong calendar of ICC events and other regeneration projects, the market simply does not support higher prices.
The Carter Jonas report warns this squeeze has combined with steep rises in wages, utilities and food costs to push hotel profits down to a fraction of what lenders and investors were told to expect.
It says these pressures, alongside a looming ground rent bill, have put the building in breach of loan covenants and risk forcing lenders to look at alternative uses such as social housing or asylum accommodation.
ICC Wales was asked to comment on Mr McCarthy’s claims and to set out how current event volumes compare with its original projections for delegate numbers and hotel demand. The convention centre said it was unable to comment on this occasion.
Mr McCarthy insists he wants ICC Wales to succeed, describing it as “critical” to the long‑term health of Newport’s visitor economy, but says the city cannot ignore the gulf between what was promised and what has so far been delivered.
“We built a four‑star hotel on the basis that the ICC and other projects would transform demand,” he said. “Those projects haven’t materialised, but the bills still have.”
Share