Confidence returns to hotel and leisure construction sector, data reveals

Confidence is returning to the hotel and leisure construction sector, with on-site work which started during the three months to August, increasing by 156%, according to the latest Glenigan data.

While the performance was still 31% behind 2019 figures, major projects (over £100m in value) were largely responsible for the rise with £505m of work starting on-site during the three-month period.

Projects with a value under £100m also experienced a “very strong” performance during the period, with contract awards rising by 93% compared with 2020 figures.

Hotels accounted for a third of sector project-starts with all projects adding £453m to the sector, an uptick of 87% when compared to 2020 but a decline of 22% when compared with 2019 figures.

Meanwhile, café, restaurant, and fast-food outlet project-starts experienced the poorest performing period, dropping 71%, adding only £14m to the overall sector.

Projects starting in London improved by 150% compared with 2020, contributing £342m to the sector.

Its performance was boosted by the commencement of work on the £230m Marylebone Lane Hotel which will deliver a new 199-bedroom luxury lifestyle hotel on the site of the former 1970’s NCP car park on Welbeck Street.

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