Hotel & leisure construction opportunities improve

Hotel & leisure construction opportunities are showing signs of improvement.

Glenigan’s construction industry research shows that the underlying value of construction starts in the hotel & leisure sector (projects worth up to £100m) leapt by 93% in the three months to September 2025 compared to the same period a year ago.

In addition, there was a 35% rise in the underlying value (projects worth up to £100m) of hotel & leisure projects given detailed planning approval in the latest quarter against the three months to September 2024.

Pipeline plans

A handful of big projects helped boost workload in the sector, but underlying opportunities are also improving.

Major projects to start in the latest quarter included the £450 million Therme Manchester wellbeing resort development (Project ID: 19255727) and the £280 million Cardiff Arena & Hotel Atlantic Wharf development (Project ID: 21427440).

Earlier this year, Deloitte’s regional crane hire survey identified more than 2,000 rooms in the pipeline in Belfast, Birmingham, Leeds, and Manchester, and Glenigan’s construction market research shows the number of projects across the UK is strengthening.

Glenigan’s intelligence found 964 hotel & leisure projects at an underlying level with detailed planning permission and due to start in the next 12 months.

Top region

The region with the largest number of underlying projects with approval, and due to begin construction over the next year, is London. There are 152 approved schemes in the pipeline for the capital.

Larger schemes with approval include a £64 million redevelopment of the Grade I listed Custom House in the City of London (Project ID: 20369254, pictured)

Other schemes range from a £3.4 million O2 Padel Social Club in Greenwich (Project ID: 23126961), where work should begin next spring, to a £19.7 million redevelopment of the Wapping Hydraulic Pumping Station in East London into exhibition and leisure space (Project ID: 19108493). Work is due to start in March.

Provincial boost

Hotel & leisure construction projects are also massing in the pipeline in the South East and North West.

The South East has the second largest pipeline of work at an underlying level, with 128 approved schemes.

These include a £9 million revamp of the Castle Hotel in Windsor, where a start is imminent (Project ID: 25461484), to the £14 million Riverwell Hotel scheme in Watford, where main contractor Kier will commence work early next year (Project ID: 21540828)

The North West has the third largest pipeline with 108 approved schemes valued between £1 million and £100 million. Work coming up in the region includes the £15.1 million Ribby Village Entertainment Centre (Project ID: 23051821). Work is expected to begin before the end of the year.

Hotel chain investment

Major hotel chains are also starting to invest in upmarket schemes.

For example, Staycity plans to build a 25-storey tower for its boutique Wilde Aparthotel brand on London’s Blackfriars Road (Project ID: 23213764). Shortlisted main contractors are working on bids and are due to return tenders in November. Work is expected to begin next June.

Staycity is also involved in the £32 million Harmsworth House hotel scheme in the City of London, where a planning application was recently submitted (Project ID: 25204212).

Construction rise

With a pipeline of work in London and signs of prospects strengthening in the regions, the hotel & leisure construction sector is offering opportunities for the industry.