According to the latest edition of the London Hotel Development Monitor, hotel investors, developers and operators continue to show a very strong appetite for opportunities in London, with 51 new openings in 2016.
These new openings add another 4,500 bedrooms to the Capital, bringing to the total number of rooms to 145,000. London provides 23% of all hotel rooms in the UK and an additional £1.3 billion was invested in London properties in 2016, with the outlook remaining strong for 2017. An additional 17,000 new rooms are expected by 2020.
New openings during 2016 represent a good mix of budget accommodation and four-star properties. The four-star sector saw a welcome boost, with eight new hotels, including two citizenM properties and the addition of a Park Plaza at Waterloo. There was also a rise in the number of serviced apartments.
London welcomed a record 19.1 million international visits during 2016, according to the International Passenger Survey (IPS), recording an increase of 3% compared to 2015. Year-on-year growth over the past five years has resulted in a 25% increase in international arrivals between 2011 and 2016. Arrivals from the USA have risen by 8%, whilst the number of European visits rose 3% against the previous year.
The London Hotel Development Monitor concludes that the Capital’s hotel industry continues to perform well. Favourable exchange rates, since the EU referendum, are helping drive record levels of visitors. The new supply of hotel rooms entering the market is encouraging and the outlook for continued investment remains positive. Despite uncertain times over the last 12-months, London remains open to both visitors and investors.
