The cost to upgrade Harrogate Convention Centre has risen by more than £2m, councillors will be told next week.
A report for North Yorkshire Council’s executive committee states that plans for large breakout conference rooms in the centre’s Studio Two could generate an extra £1.7m annually.
But the cost of the work, which would provide facilities for about 1,200 delegates, has risen from £7.1m to £9.4m in less than two years.
The committee will receive an update on the scheme on Tuesday next week (March 17).
Subject to approval, the council will then award the construction contract, with the view to building work potentially starting this summer.
Officials say the cost of the work would is forecast to be repaid within a decade through the additional income generated by the enhanced venue.
The council’s deputy leader, Councillor Gareth Dadd, whose responsibilities include property, said:
“The Harrogate Convention Centre brings thousands of visitors to North Yorkshire every year and contributes more than £45 million for our economy through the retail and hospitality sectors.
“It is a key economic driver which promotes both the town and North Yorkshire on a national stage. It is vital that it continues to play a leading role in the economic success of Harrogate and the wider region.
“Developing Studio Two by creating larger breakout conference rooms to complement the existing 2,000-seater auditorium can ensure the venue stands alongside the very best centres of its kind in the country, competing in what is an extremely competitive market.
“It can only strengthen the centre’s economic impact in the years ahead, while at the same time, allow us to reduce our subsidy and protect taxpayers’ money.”
Built in 1982, the centre has one of the largest purpose-built auditoriums in the UK, along with 13,000 square metres of exhibition space.
However, centre bosses say the absence of sizeable breakout spaces has limited its ability to host larger conferences.
The council says that without this investment, the authority would need to provide an annual subsidy of around £1.1m for the venue to remain operational.
The decision to tender the most cost-effective solution for the redevelopment of Studio Two was approved by members of the council’s executive in December 2024.
The convention centre’s director, Paula Lorimer, said:
“We are really excited about the proposals for Studio Two and there’s no doubt that the investment would significantly enhance what we can offer as a high-quality venue and destination for clients.
“The creation of dedicated breakout conference rooms in Studio Two will open up new revenue opportunities that in turn benefit the town’s hotels, restaurants, cafes and shops.
“This investment will also deliver 1,200 extra breakout spaces to support the venue’s magnificent auditorium, enabling the venue to attract the larger more lucrative UK association conferences.
“A lot of hard work goes into ensuring the Harrogate Convention Centre performs as well as it possibly can, and we are looking forward to seeing how this investment can help that continue to improve in the years ahead.”
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