Hotel & leisure opportunities improve as chains invest

Opportunities for work in the hotel & leisure sector are improving as chain hotels continue to invest in their estates.

Glenigan data points to a rise in activity, with the value of approved projects surging by 80% in the quarter to April 2026 compared to a year ago.

Glenigan economics director Allan Wilén comments: “There was mixed regional performance in project starts, but detailed planning approvals grew in most regions. There was strong growth in both starts and approvals in Scotland.”

Pipeline strengthens

Major projects drove the growth, but there was still a 58% rise in the value of approved projects at an underlying level (schemes valued up to £100 million).

According to Glenigan project intelligence, there are 983 hotel & leisure schemes at an underlying level with planning permission and due to start on site in the next 12 months.

There was a 128% increase in approvals in Scotland. Approved schemes coming up in Scotland range from a £50 million revamp of The Colourist Hotel in Edinburgh (Project ID: 23166048), where construction is due to begin this summer, to a £50 million conversion of a former Debenhams store in the Scottish capital into a Zedwell Hotel (Project ID: 24233421).

There was also year-on-year growth in five other regions. The biggest increase came in the East of England, with the value of approved projects leaping by 366%, while there was a 157% leap in the North West.

In the East of England, upcoming hotel schemes range from a £5 million Travelodge in Bishop’s Stortford (Project ID: 24284741) due to start in late summer to a £28 million Premier Inn planned for Cambridge (Project ID: 19141282, pictured).

In the North West, there are 106 approved hotel & leisure schemes due to start in the next 12 months. These include a £7.3 million extension to a Premier Inn in Northwich (Project ID: 15195157) and the £30 million Aura Hotel development in Liverpool (Project ID: 17185477).

Chain hotel spending

Hotel chains continue to invest in construction work led by Premier Inn’s owner, Whitbread, which has awarded main contracts worth a total of £136 million in the 12 months to April 2026.

A £13.1 million conversion of former offices at Canal Wharf in Leeds recently started on site (Project ID: 25254999), and Whitbread plans to add more than 2,200 bedrooms across 17 locations in 2026.

Top Spending Hotel Chains Year to April 2026

Source: Glenigan.

Glenigan data shows that Whitbread has a strong pipeline of work with 45 projects with planning permission and expected to start construction in the next 12 months.

This programme ranges from an £8.9 million Premier Inn in Chichester, where work is due to begin in early 2027 (Project ID: 24123603), to a £13.4 million extension to an existing hotel in Burgess Hill (Project ID: 24313493).

Travelodge plans

Last year was Travelodge’s biggest year of development in a decade, with 21 hotels opened. This was comprised of four new builds and 17 hotels acquired from other brands and then rebranded, which provided fit-out opportunities.

This programme is continuing. Work should start this summer on a £25 million Travelodge in Greenwich (Project ID: 18063597) and a £10.1 million conversion of an office on Godliman Street in the City of London into a hotel (Project ID: 25496352)

Brighter times ahead

With a strong pipeline of approved work, hotel chains should continue to provide openings for the industry.