In January 2003 the Midland Hotel was purchased by the Manchester based development company Urban Splash with the intention of restoring it as a hotel.

Nearly two years were spent preparing detailed plans and acquiring the necessary financial resources for the project.

In December 2004 Urban Splash announced that, thanks to grants from the Northwest regional Development Agency and English Heritage, £7.2 million of funding had been secured and refurbishment of the Midland could begin. Essential repair work to the fabric of the building was carried out first, and the main programme started in Spring 2005.

Restoration is continuing and the Midland is scheduled to reopen for business early in 2008.

Urban Splash believes it is necessary to achieve a balance between preservation and the Midland having to meet the needs of a modern market. Thus the ground floor will be restored as closely as possible to the original but the bedrooms (much altered in the 1970's) will be brought up to the standard expected by 21st century guests.

The existing, almost derelict, sun lounge has been demolished and is to be replaced by a lighter, glazed structure which will not obscure the building. At the present time there are plans for extra accommodation, as an addition, on the roof of the hotel.

Quite separate from the hotel, both physically and stylistically, a stainless steel bathhouse is planned for the south side of the site. It will feature a suspended sauna inside, under an open-air 'hot tub' where people could sip cocktails while looking out over the bay. There are also plans for a revolutionary combined heat and power system that could see the Midland producing its own power with no net carbon dioxide emissions, making it the first 'carbon neutral' hotel in the UK.

However, Tom Bloxham, chairman of Urban Splash, has pointed out that, in his opinion, the Midland will have a viable future as a hotel only if it is part of a wider regeneration scheme involving major improvements to the adjacent seafront. With this in mind, the City Council is working on a development plan for the area which is likely to include new artworks, public open space/gardens and a mixture of buildings for leisure and possibly residential use.