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Growth of Economy Hotels in London

London is widely known as one of most visited cities in the world, and that growing popularity of the UK capital influences its hotel sector. Since the 2012 Olympic Games, all hotel segments have posted growth and budget hotels are no exception. During past 4 years, more than 18,000 guestrooms have been added to hotel market of London and more than a half of them belong to the budget sector. The London Hotel Development Monitor mentions that currently 20% of the city’s hotel supply is occupied by low-cost hotels.

Traditionally, hotels in London were mostly gathered around central areas and investors were usually interested in prime locations, but the situation keep changing. These days, the most active hotel development spot, often called a “Knowledge Corridor”, stretches from Paddington to Bloomsbury with Northern part of Oxford Street and Fitzrovia included. For example, Premier Inn is soon to open its first hotel on Tottenham Court Road, and Standard International will open a hotel in the Camden Town Hall building in 2018. As it is cheaper to open hotels in less popular areas and there is no shortage of buildings as in central locations, these areas become very attractive to investors. Shoreditch is one of them – during this year more than 800 guestrooms are to be added, including the opening of Z Hotels and Nobu Shoreditch. London remains the most popular city in Europe for hotel investors. The UK capital attracts as much as 36% of the total investment in European hotel sector. It is expected that more than 40,000 new hotel rooms will be added to the city by 2036.

05.07.2016

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