This site uses web cookies · Read our Policy here
International: (+34) 952 198 657
Open navigation menu

What Does the Future Hold for London Hotels?

First name: 

 

Last name: 

 

Tel. Number: 

IPIN Disclaimer.

  We never share your data with any third parties.

*Note: IPIN investment opportunities are available subject
to location and certain knowledge / experience criteria.

News by Category

Archives



Jones Lang LaSalle  London  Olympic Games  Hotel Sector  Graham Craggs  Southwark  London Hotels Performance 

What Does the Future Hold for London Hotels?

By - Thursday 14 February 2013

While many of us will have struggled to find a room in a good London hotel without breaking the bank, this may not be an accurate portrayal of the health of the sector. True, the market has remained resilient during the economic downturn, proving that the capital continues to be a draw for holidaymakers and business travellers alike. However, concern is mounting that as investors jump on the hotel bandwagon, market saturation will lead to hard times ahead for existing companies.

So just what does the future hold for London's hotels? According to Jones Lang LaSalle, this all depends on how far ahead you're looking. Graham Craggs, managing director of Hotels and Hospitality, stated: "We had  found no clear evidence that a strong supply increase in the city has had a materially negative impact on the trading performance of existing hotels. This was even the case in the City of London and Southwark where supply growth has been the highest." Nonetheless, he added that limited room demand amid growing supply in 2013 "could result in more challenging market conditions for hoteliers in the short term".

The end of the Jubilee and the Olympic Games will undoubtedly lead to a drop-off for London hotels and the British economy as a whole, which continues to be sluggish. "We believe that additional supply will increase the likelihood of a potential flattening or even a decline in RevPAR (revenue per available room)," Mr Craggs stated. But just how long with this negative picture last for the city?

With occupancy remaining around a stable 80 per cent in recent years and the capital continuing to attract foreign visitors and investors in their droves, property investment in the hotel market is still a good choice. In fact, with domestic and international hotel operators expanding into this core market, indicators suggest there is potential for a lucrative time ahead. Supply is also continuing to grow strongly, with a further 31 hotels with 4,600 bedrooms scheduled to open in this year alone.

Subscribe to IPIN Live by Email - Get our News & Blog updates delivered directly to your inbox - click here


Comments

 

*This page is provided for information purposes only and should not be construed as offering advice. IPIN is not licensed to give financial advice and all information provided by IPIN regarding real estate should never be treated as specific advice or regulations. This is standard practice with property investment companies as the purchase of property as an investment is not regulated by the UK or other Financial Services Authorities.


«« Back to IPIN Live

Follow IPIN Global


Latest Content

Recent Comments

Powered by Disqus