The number of hotel rooms in London is expected to grow by 12 per cent over the next three years according to new data compiled by London & Partners and AM:PM, with the increase being driven by an uplift in budget and five star hotel accommodation across the capital.
These new properties and hotel extensions will add 17,769 more rooms across the capital over the same period, up from the current figure of 138,769.
The data released to coincide with IBTM World in Barcelona this week, shows that 43 budget properties are expected to open by the end of 2018, with low-cost accommodation in the city predicted to increase by 29 per cent over the next three years.
Over the coming three years, 19 five star properties will also open in the capital, increasing the hotel stock in this category by 22 per cent.
Tracy Halliwell, director of business tourism and major events at London & Partners, said: “With the rising number of business and leisure visitors to London and strong occupancy levels across the city, it is great to see that a range of hotel companies are investing in new properties, catering for the demand for both low-cost and high-end hotels.
“With properties right next to many tourist attractions, these investments will help to attract more visitors to London as well as provide new facilities for both local and international businesses to host meetings and conferences across the city.”
Rising business and leisure visitor numbers for London have been reflected in record occupancy levels across the city’s hotels. London occupancies have averaged 80 per cent or above since 2006, according to PwC and their UK hotels forecast 2016 predicts a decade high of 84 per cent this year, with the Rugby World Cup having provided a further boost.
PwC projects a further increase to 85 per cent occupancy for London’s hotels in 2016.
Alan Gordon, director of AM:PM said: “London has absorbed significant new hotel supply in recent years and continues to attract serious attention from UK and international hotel groups looking to enter or extend their presence.
“Alongside wider infrastructure and real estate investment in the capital, the footprint of the hotel market in London continues to expand and this has opened up new opportunities in many locations.
“Aldgate, Shoreditch, Vauxhall and Whitechapel are just a few areas that are witnessing exciting change that includes new hotels, many of which are from brands making their UK debut.”
Between 2010 and 2014 there was a 18.9 per cent increase in room supply in London and the city continues to see increasing hotel openings to cater for this strong demand.
New luxury hotels opening their doors in 2016 will include the InterContinental London – The O2, the Four Seasons Hotel London at Ten Trinity Square and The Curtain Hotel and Members Club Shoreditch.