The UK hotel and leisure construction sector witnessed substantial growth in May 2024, marked by increased project starts, contract awards, and planning approvals.
- Project initiations reached £1.039 billion, showing an 82% rise from the previous quarter and a 22% increase over last year.
- Main contract awards grew by 30%, totalling £1.077 billion, despite a notable drop in underlying contract awards.
- Detailed planning approvals surged by 44%, amounting to £2.129 billion, with significant contributions from major projects.
- Regional activity was dominated by the North West and London, reflecting significant increases in construction activity.
The UK hotel and leisure construction sector experienced a notable upswing in May 2024. Project starts totalled £1.039 billion, an impressive 82% rise from the previous quarter and a 22% increase compared with the previous year. Major projects, valued at £100 million or more, commenced with a total value of £300 million, a significant recovery from the prior quarter’s inactivity and a 20% boost over last year.
Main contract awards in the sector also reflected positive momentum. Totalling £1.077 billion, these awards increased by 30% against the preceding quarter and 16% year-on-year. Major contracts reached £455 million, sharply up from the previous quarter, with underlying contract awards, however, witnessing a decline of 28% compared to the previous year, now standing at £622 million.
Detailed planning approvals showed robust growth, amounting to £2.129 billion for the quarter. This reflects a 44% increase from the previous quarter and a 23% rise over last year, powered by major projects that totalled £929 million – over eight times the previous quarter’s figures and 113% higher than last year.
Sport facilities were significant contributors to sector growth, accounting for 37% of starts, amassing £389 million, and showing a 299% increase from last year. Cafes, restaurants, and fast-food outlets rose by 76% to £99 million, while cinemas and theatres saw a 6% increase to £58 million. Conversely, the hotel segment fell 59% from last year, while indoor leisure facilities dropped by 31%, contributing £100 million to the sector.
Regionally, the North West emerged as the frontrunner, hosting 35% of hotel and leisure projects started. The value of projects in this area reached £363 million, a fivefold increase from the prior year. The West Midlands grew by 147% to £159 million, and Scotland’s contribution rose by 20% to £91 million. London accounted for the largest share of project approvals, with values growing by 36% to £869 million, driven by a plethora of new schemes.
In summary, May 2024 witnessed significant growth in the UK’s hotel and leisure construction sector across various metrics and regions.
