£46 Million Funding Secured for New Room2 Hotel in Leeds City Centre

Marrico and Helios Real Estate have announced the acquisition of £46 million in forward funding from Aberdeen Investments to develop a new room2 hotel in the heart of Leeds. The hotel will be constructed by Caddick Construction on the site of the former Leeds International Swimming Pool, contributing to the broader Lisbon Street regeneration project in the city’s West End.

As the developers, Marrico and Helios have partnered with the Lamington Group, which will operate the hotel under its room2 hometel brand. The proposed 16-storey building will feature 200 hotel rooms, offering a combination of studio and suite accommodations tailored for both short- and extended-stay guests. Additional amenities will include a ground floor café and bar named Winnie’s, meeting and event spaces, a gym, laundry facilities, and retail concessions.

Construction is set to begin in May 2026, with Caddick Construction appointed as the main contractor. The project aims for completion by Spring 2028. Designed by DLA Architecture, the hotel will be fully electric and powered by renewable energy, aligning with room2’s commitment to sustainability and a low-carbon hospitality approach.

Scott Barnes, Development Director at Marrico, remarked, “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 from Helios Real Estate expressed her enthusiasm, stating, “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.”

Robert Godwin, CEO of Lamington Group, added, “Our ambition is to deliver hometels across the UK which combine great guest experiences with a responsible approach to hospitality. We’re excited to be bringing a new sustainability-led room2 hotel to Leeds in partnership with Aberdeen Investments, Helios Real Estate and Marrico LLP.”

Steve Ford, Regional Managing Director of Caddick Construction Yorkshire & North East, stated, “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.”

DLA Architecture has been selected as the architect for the project, while Richard Boothroyd & Associates served as the developers’ EA/QS. Square One Law represented Marrico, and Addleshaw Goddard provided legal advice to Aberdeen Investments.