Hotels & Hospitality

Demand for hotel and hospitality space is being shaped by visitor growth, major events, business travel, city-centre regeneration and a growing evening and leisure economy.

The West Midlands welcomed a record 101.5 million visitors in 2024, with concerts, tourist attractions and major sporting events helping the region pass 100 million visits for the first time.

This momentum is supporting demand for hotels, aparthotels, restaurants, bars, leisure uses and mixed-use destinations that serve visitors, residents, workers and students.

Hotel and hospitality demand is being shaped by a mix of city-centre growth, visitor economy momentum and major regeneration. Across the West Midlands, opportunities range from new hotel and aparthotel development in Birmingham to hospitality-led mixed-use schemes and leisure-linked investment in established visitor destinations.

HVS reports that Birmingham’s hotel pipeline includes approximately 2,300 rooms across 20 projects, equivalent to around 16% of current supply, with most new developments in the upper midscale and upscale segments.

There are also signs of site readiness. Deloitte’s Brand Birmingham analysis notes that several consented hotel schemes are on cleared sites, which could move quickly if construction starts are triggered.

Dudley and the wider Black Country have strong visitor assets including the Black Country Living Museum, Dudley Zoo and Castle, and wider town-centre regeneration opportunities. Coventry, Solihull and Wolverhampton also provide opportunities linked to events, business travel, cultural venues and mixed-use regeneration.

Major transport investment and city-centre regeneration are improving connectivity between visitor destinations, helping create stronger locations for hotels, food and beverage, leisure and evening economy uses.

Hotel and hospitality investment in the West Midlands is being shaped by changing visitor and occupier demand.

Key opportunities include aparthotels and extended-stay accommodation, lifestyle and upscale hotel concepts, hospitality uses within mixed-use regeneration schemes, and retrofit-led upgrades that reduce operating costs and improve ESG performance.

As city centres become places to live, work, study and visit, hospitality is playing a bigger role in creating active, attractive and commercially resilient neighbourhoods.