London accommodation set to grow by 2012
The UK capital is due to experience a 12% increase in new hotel rooms by 2012, according to recent research from Visit London and TRI Hospitality Consulting.
The forecasted increase of 13,300 rooms will take the total hotel room supply in London to more than 123,000 by the time of the Olympic and Paralympic Games.
The latest London 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 predicted 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 UK capital’s ability to attract business and leisure visitors, despite the current economic climate. The survey also reports a low incidence of hotel development schemes being abandoned.
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.
“The London 2012 Olympic and Paralympic Games are a huge opportunity for the tourism industry in London especially in terms of accommodation,” said Visit London’s interim chief executive Sally Chatterjee.
“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.”
Meanwhile, 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.”
The newly re-launched London 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, and the data will be updated quarterly.
The monitor is free to partners of Visit London and can also be ordered on subscription at www.visitlondonmediacentre.com