This follows a slump of 23% over the past year, with projects valued at £100m or less focused on in this research.

Glenigan has ascribed this to improvements in consumers’ situations.

“A gradual rise in household income is expected to fuel growth in discretionary spending on hospitality and leisure experiences over the next three years,” said Glenigan economics director Allan Wilén.

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“This, coupled with a further recovery in overseas tourism, should invigorate the sector, attract investors, and translate into increased project starts.”

A 12% rise in the value of projects securing planning permission will also fuel this rise, with Glenigan identifying 2,334 hotel-related projects to start work in the next 12 months.

London will lead this recovery according to Glenigan, with £1.6bn worth of hotel projects to be granted planning permission in the capital this year.

Work is expected to increase across the sector, from budget hotels to high-end schemes.

Nearly half of London-based projects are valued from £1m to £100m, meanwhile outside the capital, plans for smaller hotels are also increasing.

Hotel and leisure construction is anticipated to moderate in 2025, with 6% growth that year and 7% in 2026.