The 2018 London Hotel Development Monitor Report, published by JLL and London & Partners, shows that the capital is set to add 11,600 rooms by 2020 – outpacing a number of major European cities, including Paris, Berlin, Lisbon and Milan.
Bill Prosser, MD of destination management company The Competitive Edge, told M&IT: “The strength of London is that whatever your brand is trying to get across, London has options to deliver that message. So, a bank that is talking about history and stability, London has hotels that will reflect that. Whatever your client’s objectives are, we can deliver that. And the broader the range of options, the better that is.
“We don’t see a great deal of overcapacity. The big change for inbound tourism has been so much more long haul than there used to be This week we have a group coming in from Israel for 1,300 people on a four-day incentive. The issue is that we need hotels with large inventories. So it depends where the 11,000 rooms are going to be.
“Also, everything depends on Brexit, you can’t tell what effect that’s going to have on the market.”
The report also highlights the growth of the lifestyle hotel market segment or those that place an emphasis on design, art and the latest technology features, such as CitizenM, Soho House, Rosewood and The Ned.
Graham Craggs, MD of JLL Hotels & Hospitality, said: “London is one of the most liquid hotel markets in Europe and a popular investment hotspot for both domestic and international investors. The weaker pound has attracted a variety of overseas hotel operators and investors to invest in hotel real estate.”
“Despite political uncertainty, investors and hotel companies continue to view London as a key destination. This is evidenced by the willingness to consider new development opportunities and the number of new hotel brands opening in the London market.”
