Funding milestone unlocks Leeds hotel scheme

A funding deal has paved the way for plans for a 200-room hotel in Leeds city centre.

Property development and investment firms Marrico and Helios Real Estate have secured £46 million in forward funding from Aberdeen Investments to deliver a new room2 hotel in Leeds city centre, with Caddick Construction appointed to build the scheme.

The development will be located on the former Leeds International Swimming Pool site, forming part of the wider Lisbon Street regeneration in the city’s West End. 

Lamington Group has been confirmed as operator under its room2 hometel brand.

The 16-storey scheme will feature 200 rooms, offering a mix of studio and suite accommodation aimed at both short and extended stays. 

Plans also include a ground floor café and bar, meeting and events space, a gym, laundry facilities and retail units.

Designed by DLA Architecture, the building will be fully electric and powered by renewable energy, aligning with growing demand for low-carbon hospitality.

Scott Barnes, development director of Marrico, said: “This has been a highly collaborative process with Helios, Aberdeen, Room2 and Caddick Construction, alongside the wider design team. 

“We are proud to have brought the project forward to this stage. 

“Securing funding is a significant milestone and we look forward to delivering another high-quality hotel in Leeds following the completion of Hyatt at Sovereign Square.”

Zoe Cartner, of Helios Real Estate, added: “We are delighted to have reached this milestone and to be continuing our partnership with Marrico. 

“Lisbon Street is a key regeneration site and this scheme will make a strong contribution to the area.”

Steve Ford, regional managing director of Caddick Construction Yorkshire and North East, added: “We are very proud to be appointed as main contractor on this landmark scheme in Leeds. 

“The Lisbon Street development represents an exciting opportunity to contribute to the ongoing regeneration of the West End, delivering a high-quality, sustainable hotel that will support the city’s growing hospitality sector. 

“Working alongside Marrico LLP, Helios Real Estate and the wider project team, we look forward to bringing forward a development that meets the highest standards of design and construction, while aligning with ambitious environmental targets. 

“This project further strengthens our presence in Leeds and underlines our commitment to delivering complex, city centre schemes across Yorkshire and the North East.”

Construction is set to begin in May 2026, with completion targeted for spring 2028.

Want your business, product or service to be seen regionally and nationally? Bdaily helps you get your story in front of the right audience, every day. Find out how Bdaily can help →

Join more than 55,000 subscribers by signing up to our daily bulletin each morning here.