Healthy pipeline for hotel, entertainment and leisure construction

Construction output in the hotel, entertainment and leisure sector, grew to £10.1bn in 2019 from £6.2bn in 2015, almost doubling in just four years, according to AMA Research.

Hotel, Entertainment & Leisure Construction Market Report – UK 2020-2024, finds that there is a healthy pipeline of construction work, including major hotel, sports stadia and leisure/entertainment activities. However, the pace of delivery will depend upon the resilience of the UK economy following Covid-19 and Brexit. 

Hotels represent the largest sub-sector and have performed strongly, with a number of major construction projects and an appetite for investment. London has been a key driver behind this growth. Inbound tourism has grown along with spending in recent years. However, with the Covid-19 pandemic still pressing and travel restriction still in force its sill be worth seeing if this appetite for investment continues and returns post-Covid along with the popularity of staycations.

The gaming and betting sector faces significant challenges from consumer movement towards online services, especially among the younger audiences. The sports and health and fitness sectors present significant opportunities, in particular larger-scale projects in the football and tennis sectors, especially as these are the sectors with some of the greatest willingness and ability to adapt for social distancing and Covid secure premises.

Following an anticipated decline of 22 per cent in 2020, construction output in the hotel, entertainment and leisure sector is forecast to be expected to be flat in 2021, improving from 2022 onwards.



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