The move puts eight jobs at risk among Multibuild’s 47-strong staff.
Balfour bought Multibuild Hotels and Leisure and Multibuild Interiors in 2010 for £1.9m.
A Balfour Beatty spokeswoman told the Enquirer: “Multibuild is being combined with Balfour Beatty’s fit out and refurbishment capability in other areas of the business.
“A standalone hotel and leisure fit out company is no longer viable due to an insufficient pipeline of hotel and leisure fit out opportunities.
“Existing Multibuild contracts will continue. Multibuild is not bidding for any more work.
“There are 47 employee within Multibuild. Eight are currently under consultation.”
The spokeswoman added that the move is separate to the wider restructure of the construction services UK division.
She said: “Balfour Beatty will continue to bid for hotel and leisure fit out contracts but no longer under the Multibuild brand.”