Kirklees Council’s project to renovate Huddersfield’s George Hotel continues despite a 50% cost increase.
- The original contractor, Morgan Sindall, was replaced due to pricing disagreements with Kirklees Council.
- Initially projected at £20.2m, the development costs have risen to £30m.
- The new plan will increase the number of hotel rooms from 91 to 108, altering the original design layout.
- Work is set to commence next year with completion now expected in 2027.
The George Hotel in Huddersfield is undergoing significant renovation. Despite a sharp increase in costs, plans to revitalise this Grade II-listed building remain on track. The historical importance of the building, which is renowned as the birthplace of rugby league, makes it a central piece of a broader £250m initiative to rejuvenate Huddersfield town centre.
Initially, Morgan Sindall was contracted by Kirklees Council under a preconstruction services agreement. However, disagreements arose when the contractors proposed a fixed price that both parties could not agree upon. The council viewed the proposed costs as unaffordable and thus parted ways with Morgan Sindall. This caused a search for an unnamed contractor with substantive hotel experience to reassess the project costs.
Originally, the project was estimated at £20.2m, but this figure has now reached £30m. The primary sources of this inflation include unforeseen asbestos discovery in the basement and the preservation of a structural facade, contributing to buildability issues and risk. With construction expenses inflating by approximately 18% in recent years, the council is taking steps to mitigate further financial strain.
A revised concept for the hotel has emerged, proposing an increase in rooms from 91 to 108, facilitated by a redesign that eliminates the proposed atrium, thereby allowing accommodation on the ground floor. Even though these alterations necessitate a new planning application and listed building consent, the council is optimistic that the time saved in construction will compensate for these requirements.
The construction is slated to begin in the forthcoming year, with the projected completion set for 2027, a full 18 months beyond the original deadline. The council emphasizes the importance of repurposing the site as a hotel, citing significant economic benefits and a boost in investor confidence for Huddersfield. Failure to proceed would leave the building vacant, negating much-needed economic gains and incurring mothballing costs.
The redevelopment of the George Hotel is a testament to Huddersfield’s commitment to economic revitalisation despite financial hurdles.
