UK construction activity May 2024: Hotel & leisure


Project starts, main contract awards and detailed planning approvals all grew against both the previous quarter and last year.

Hotel & leisure overview

Totalling £1.039bn, hotel & leisure projects starting on site during the three months to May grew 82 per cent against the preceding three months to stand 22 per cent up on the previous year. Major projects (£100m or more in value) commencing on site totalled £300m, a growth from the previous quarter when no major projects started on site and a 20 per cent increase on last year. Totalling £739m, underlying starts (less than £100m) grew 39 per cent against the preceding three months on a seasonally adjusted (SA) basis and increased 23 per cent compared with last year.

At £1.077bn, hotel & leisure main contract awards increased 30 per cent against the preceding three months and increased 16 per cent against the previous year. Major projects totalled £455m, up on the preceding three months where there were no major projects, and up 355 per cent on the previous year. Underlying contract awards decreased 28 per cent (SA) against the preceding three months and decreased by 25 per cent compared with a year ago to total £622m.

At £2.129bn, hotel & leisure detailed planning approvals grew 44 per cent during the quarter to stand 23 per cent up on the previous year. Underlying approvals fell 2 per cent (SA) against the preceding three months and decreased 7 per cent on the previous year, totalling £1.199bn. Major projects totalled £929m during the period; more than eight times higher than in the previous quarter and 113 per cent higher than a year ago.

Types of projects started

Sport facilities accounted for 37 per cent of sector starts during the three months to May, with the value adding up to £389m. The segment grew 299 per cent compared with last year’s levels. Cafes, restaurants and fast-food outlets jumped 76 per cent against the previous year to total £99m, accounting for 10 per cent of the sector. Cinemas and theatres also increased 6 per cent on a year ago to total £58m, a 6 per cent share of the sector.

In contrast, hotels and guest houses fell 59 per cent on last year’s levels to a total of £173m, accounting for 17 per cent of the sector. Indoor leisure facilities experienced a 31 per cent decline compared to the preceding year. The segment accounted for 10 per cent of the sector with a total value of £100m.

Regional

The North West accounted for 35 per cent of hotel & leisure work starting on site, making it the most active region for project-starts, thanks to the value increasing more than five times against the previous year to total £363m. Accounting for 15 per cent, the West Midlands grew 147 per cent against last year to total £159m.

Scotland accounted for a 9 per cent share, with the value of work adding up to £91m, having grown 20 per cent compared with last year’s levels. Accounting for an 8 per cent share, the South East grew 24 per cent to total £82m. Accounting for a 7 per cent share, Northern Ireland jumped 433 per cent against last year to total £77m. Accounting for the same share, Yorkshire & the Humber increased 75 per cent to total £74m.

London accounted for the highest share of project approvals (41 per cent), thanks to the value having grown 36 per cent against the previous year to total £869m. Growth in the capital was accelerated by the commencement of various schemes. Consents in the South East increased 43 per cent from last year’s levels, adding up to £418m, accounting for a 20 per cent share of the sector.

Accounting for 13 per cent, the North West also experienced growth, with approvals having increased 12 per cent on a year ago, totalling £275m. Yorkshire & the Humber accounted for an 11 per cent share, having increased 108 per cent on a year ago to total £225m. Accounting for 5 per cent, approvals in Scotland grew 50 per cent against a year ago to total £100m.



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