Shares in Watkin Jones rose 2% to 29.3p after the property developer unveiled a new hotel scheme in south-west London, adding to its growing development pipeline.
The group has agreed a development partnership with Latium Enterprises to build a 294-room hotel on a former brownfield site on Worple Road in the centre of Wimbledon.
The 11-storey scheme will include a club lounge, gym, co-working space and café, alongside guest accommodation. Watkin Jones said it is targeting a BREEAM Excellent rating, a widely used measure of environmental performance in buildings, as part of its sustainability commitments.
Construction is expected to complete in summer 2028. Over the life of the project, the development is forecast to generate about £40 million of revenue for Watkin Jones, with profit margins in line with current guidance.
The Wimbledon scheme is the second partnership between the two groups, following a project in New Kent Road announced earlier this year.
Chief executive Alex Pease said the deal highlighted Watkin Jones’s ability to work with partners while diversifying revenues and building a more resilient business.