Indoor Leisure Construction Projects Keep Contractors Busy

Posted by Glenigan on 15th November 2022 -

Developers in the hotel and leisure sector face some tough times as rising costs and tight consumer budgets take their toll on hospitality businesses. But indoor leisure construction projects are continuing to attract significant new investment.

According to the new November Glenigan Construction Industry Forecast 2023-24, the value of detailed planning approvals for indoor leisure projects has been ‘particularly firm’ over 2021 and 2022 and is expected to translate into a growth area and more construction contracts as work gets underway on new schemes.

Investment in indoor leisure facilities such as sports halls, gyms, cinemas, and family attractions will help to drive a 9% rise in the value of underlying project starts (under £100 million in value) across the overall hotel & leisure sector which Glenigan is forecasting for 2023. A further 2% rise in total hotel & leisure project starts is pencilled in for 2024.

‘Immersive experiences’

More investment comes as the underlying prospects for indoor leisure businesses have improved as Covid has faded. According to a report from property agent Avison Young earlier this year, cinema admissions are set to reach 80% of 2019 levels in 2022 whilst theme parks and visitor attractions should benefit from more international visitors. The weaker pound should also boost overseas visitor numbers. Meanwhile, new formats in the sector such as virtual reality and so-called ‘immersive experiences’ are also generating new investment in indoor leisure projects.

Glenigan data highlights a series of significant indoor leisure schemes around the country where construction work is getting underway.

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