• Hotel development in London remains strong despite recession
• Investors target openings before the Olympic and Paralympic Games
New research from Visit London and TRI Hospitality Consulting suggests that London is due to experience a 12% increase in new hotel rooms by 2012.
The forecasted increase of 13,300 will take the total hotel room supply in the capital to over 123,000 by the time of the Olympic and Paralympic Games.
The latest “Hotel Development Monitor”, reveals that despite the current recession, future hotel development in London remains robust with development projects concentrated in the budget and high end markets.
The forecasted number of new bedroom supply in 2010 alone is expected to be above all levels experienced since 1989, with an estimated 4,300 rooms projected to enter the market.
The research suggests that investors are taking a pragmatic and long-term view of the London hotel market and the capital’s ability to attract business and leisure visitors, despite the current economic climate. The incidence of schemes being abandoned is low.
Many investors are targeting their openings before the London 2012 Olympic and Paralympic Games, indicating considerable faith in their regenerative impact and ability to attract visitors from all over the world to all parts of the city. Nearly 5,000 new hotel rooms could be built in East London alone between now and 2012 if all proposed developments go ahead.
Visit London interim CEO Sally Chatterjee commented:
“The London 2012 Olympic and Paralympic Games are a huge opportunity for the tourism industry in London especially in terms of accommodation. Hotel investors and developers clearly have faith in the long-term ability of the city to attract business, with the Games providing a valuable stimulus to bringing forward developments that might otherwise have taken many years to get off the ground.”
David Bailey, Deputy Managing Director of TRI Hospitality Consulting commented:
“The latest London development statistics highlight that investors remain positive about London as a leading international hotel market. Many experts have underestimated the resilience of the London hotel market and its popularity as a leisure destination. Despite the current economic climate, London will continue to be an attractive location for hotel investment.”
Peter Rogers, Chief Executive at the London Development Agency said:
“The visitor economy plays a vital role in the capital’s economy with over 300,000 jobs in the industry. Developers and operators are primed to invest in London and Visit London’s ‘Hotel Development Monitor’ is an essential tool to encourage developers to invest in the future of the capital’s hotel offer.”
Published by Visit London and TRI Hospitality Consulting, the newly re-launched “Hotel Development Monitor” tracks scheduled hotel openings, development “hot spots” and potential gaps in the market.
The July issue presents statistics on future hotel supply forecasted in London up until 2013.
The London Hotel Development Monitor will be updated on a quarterly basis and will examine various aspects of the London hotel market with more information and data provided on the sector as the London Hotel Development Monitor evolves.
The London Hotel Development Monitor is free to partners of Visit London and can also be order on subscription via the Visit London website http://www.visitlondonmediacentre.com/facts_figures/london_hotel_development_monitor/
Notes to Editors
Information in the Hotel Development Monitor covers market facing hotels and excludes B&Bs, student accommodation and small hotels under 20 rooms. Purely speculative opportunities (ie those which are announced but for which no formal planning applications have been made) are excluded.