Overall, the construction data specialist expects UK-wide hotel and leisure construction starts — under £100m — to rise by 5% this year and then 12% in 2027.

In the three months to February 2026, several key Northern regions have been highlighted as contributing to this growth.

The underlying value of construction projects with planning permission — over this period — increased by 61% in Scotland, 79% in the North East and 95% in Yorkshire and Humber.

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Major hotel and leisure construction schemes are set to boost workload. Four of the largest value projects due to start on site this year are in this sector, and three are in the upper half of the UK.

Conversely, little movement was recorded across the South East and activity actually fell in the South West and London.

“The introduction of permanently lower business rates multipliers for high-street retail, hospitality, and leisure properties in 2026/27 is also expected to stimulate hotel and leisure construction,” said Allan Wilen, economics director at Glenigan.

“This measure will reduce long-term operational costs, making investments in new developments, expansions, or upgrades more financially viable for businesses.”