New Premier Inn plan for Lancaster city centre
Plans for a new hotel in Lancaster city centre have taken a step forward following the signing of an agreement for lease between Maple Grove Developments and Whitbread PLC, the parent company to Premier Inn.
Subject to planning permission, the leasehold agreement will see the delivery of a 110-bedroom Premier Inn hotel on Edward Street within the Canal Quarter of the city – an area earmarked for long-term regeneration by Lancaster City Council.
Maple Grove Developments, the commercial development arm of Lancashire-based Eric Wright Group, proposes to develop the derelict vacant site into a latest format Premier Inn.
Whitbread currently operates an 81-bedroom Premier Inn on Caton Road on the edge of the city.
High levels of customer demand across Premier Inn’s existing estate, as well as expanding visitor numbers across Lancashire and Cumbria, are driving the company’s commitment to a second Lancaster hotel.
Jill Anderson, acquisition manager for Whitbread, said: “This agreement is a significant milestone for both Lancaster and Whitbread’s expansion in the Northwest. We have long targeted the city centre as a priority location, and this new Premier Inn will deliver attractive financial returns and meet clear demand for high-quality, affordable accommodation.
“In partnership with Maple Grove Developments, we’re unlocking a key regeneration site and bringing it back into productive, long-term use – creating permanent hospitality jobs, supporting local businesses and driving new economic activity. We’re pleased to be moving forward with a development that will deliver lasting benefits for Lancaster.”
Based on latest published figures of the average year-round occupancy of Premier Inn hotels, around 45,000 guests are anticipated to stay at the 110-bedroom hotel on maturity every year, with the vast majority expected visit the city centre for food and drink, leisure experiences and business visits.
Premier Inn’s own national research study published in 2024 placed the average external guest spending at its hotels at £143/bedroom/night, with more than half of this money spent in the local area around a guest’s chosen hotel.
James Scott, managing director of Maple Grove Developments, said: “Getting the development to this stage has involved foresight, determination and the hard work of many committed people, including Officers and elected representatives at Lancaster City Council.
“Signing the agreement for lease with Whitbread brings certainty to the change we are seeking to deliver at the Canal Quarter, ultimately transforming a collection of derelict industrial buildings into a high-quality hotel that will bring many lasting benefits to Lancaster and the surrounding area.
“It’s a development I’m proud to be a part of and I’m looking forward to moving it to the next stage – submitting our planning application shortly.”
The proposed hotel will be positioned at the corner of Moor Lane and Edward Street, with the hotel entrance and ground-floor restaurant area facing into both a new public area and Edward Street. A palette of light and dark brick, stone tiles and a slate roof is proposed in reference to the character of the former industrial area.
Whitbread’s commitment to a new leasehold hotel in Lancaster City Centre is part of a programme of targeted investment across the north-west of England and follows the company’s success in achieving planning permission for a new Premier Inn in Carlisle City Centre earlier in 2026.
Councillor Peter Jackson, cabinet member with responsibility for Lancaster regeneration and local economy, said: “Proposals such as this represent a huge vote of confidence in Lancaster and the opportunities that exist for investment and regeneration.
“The Canal Quarter Masterplan sets out an ambitious long-term vision to transform this part of the city into a vibrant destination where people can live, work, visit and spend time.
“Continued interest from developers and investors is an important step towards bringing that vision to life and unlocking the potential of one of our most important regeneration areas.”
Should planning permission be granted, the city centre hotel is anticipated to take 18-months to build, and Whitbread expects to create around 30 permanent job opportunities on opening.