Construction starts on £46million 'hometel' in Leeds city centre with 'sustainability at its core'
The new 16-storey room2 is being built on the site of the former Leeds International Swimming Pool
Construction has begun on a £46million “hometel” in Leeds city centre that has “sustainability at its core”.
Caddick Construction has officially broken ground at the 16-storey and 200-room new room2 hotel development on Lisbon Street, which is being delivered by Marrico and Helios Real Estate as part of the wider regeneration of the West End of the city.
Marked with a groundbreaking ceremony, the start on site represents the first major hotel development in the city centre since the Hyatt at the Sovereign Square scheme, which was also brought forward by Marrico LLP and Helios Real Estate in 2022.


Scott Barnes, Development Director at Marrico LLP, said: “It’s great to see construction now underway at Lisbon Street following several years of planning and collaboration between all parties involved.
“This is another important step forward for the wider regeneration of the area and continues our long-term commitment to investing in Leeds city centre.”
The 200-room development will feature a mix of studio and suite accommodation designed for both short- and extended-stay guests. The scheme will also feature a ground floor Winnie’s café and bar, meeting and events space, gym facilities, laundry amenities and retail concessions.
Designed by DLA Architecture, the building will be fully electric and powered by renewable energy, supporting room2’s sustainability-led approach to hospitality.
Zoe Thompson, Development Director at Helios Real Estate, said: “We’re excited to be delivering a brand with sustainability at its core and we have no doubt this development will be a fantastic new addition to Leeds city centre and the city’s thriving hospitality market.


“It’s great to see construction now underway on site, marking an important milestone for both the project and the wider regeneration of this part of the city centre.
“The Lisbon Street development will play an important role in transforming the area, contributing not only to Leeds’ evolving skyline but also supporting the local economy through investment, job creation and wider opportunities across the city.”
Located on the former Leeds International Swimming Pool site, the project is being forward funded by Border to Coast Pensions Partnership, advised by Aberdeen Investments, with Lamington Group secured as operator under its room2 hometel brand.
James McLean, fund manager at Aberdeen Investments, said: “The scheme is well located within a wider mixed-use development on the former International Swimming Pool site in Leeds city centre, and is within easy reach of key office, retail and transport connections.
“Room2 offers a sustainable hospitality model aligned with the Fund’s ESG strategy, building on our existing investment in Room2 Southampton.”
Completion is expected by spring 2028.
Steve Ford, regional managing director of Caddick Construction Yorkshire & North East, said: “Breaking ground at Lisbon Street is a significant moment for everyone involved in the project and reflects the strong collaboration between all partners to bring the development forward. It’s particularly exciting to see one of the first major hotel developments in Leeds city centre for several years now progressing on site, helping to drive the continued regeneration of the West End and strengthen the city’s hospitality industry.
“As construction gets underway, our focus is on delivering a high-quality hotel that enhances Leeds’ growing visitor economy and sets high standards in sustainability and construction. We are proud to be delivering another landmark city centre scheme in Leeds and look forward to seeing the development take shape over the coming months.”
