Ultraconservatives obtain majority to push through changes in Pinochet-era constitution
Many public pensions investing in private equity do not have enough assets to pay out all their promised benefits
Heads of both sides have agreed to meet in Saudi Arabia but no date has been set
London’s hotels are on a major growth spurt with the UK capital on the cusp of becoming the city with the most hotel rooms excluding China, taking the crown from Las Vegas.
With some megaproperties in the pipeline, London is expected to be able to offer 183,600 rooms in the next few years — a projected 18% increase from its current total, according to STR, a hotel market data company.
Las Vegas, currently third behind world leaders Shanghai and Beijing, is looking at 8% growth, and Tokyo is at 3%, according to the count of projects that have been announced.
Of the 27,912 rooms counted by STR announced in London, 13,455 should be open by the end of 2025. There is no firm timeline for the remaining rooms, and hotel construction projects are frequently delayed.
Shanghai, with a population of more than 26-million, has about 346,000 hotel rooms, while Beijing has more than 323,500, according to STR.
When the pound fell after Brexit, London suddenly became a much more affordable place for tourists to visit, and the historic city remains one of the most desirable destinations. London limits short-term rentals such as Airbnb to 90 days a year, clearing away some competition for hotels.
Now, London hotels are doing better in some respects than before the Covid-19 pandemic. In December, for example, the average room cost £207, 31% above pre-pandemic levels, though occupancy at 76.8% was slightly lower, according to STR.
“It is one of the key global cities and is always going to drive business,” said Thomas Emanuel, a senior director at STR. “The market continues to do incredibly well, even when times are difficult or economic circumstances are not great. London is always this beacon.”
Las Vegas, meanwhile, is constrained by its own success: everyone wants to be on the famous strip, and there’s limited real estate. It’s only 6.7km long and is already highly developed.
London is in the middle of a luxury hotel boom. Some of the most eagerly awaited hotels include the Peninsula London by Buckingham Palace, with 190 rooms, the Raffles London at the OWO (120 rooms), 1 Hotel Mayfair (181 rooms) and the Mandarin Oriental Mayfair with 50 rooms. All are set to open in the next few months. A room at the Raffles, an elegant refurbishment of the Old War Office, starts at £1,100 a night.
Americans are expected to splash out when coming to town for King Charles II’s coronation, but locals have also been strong customers. “There’s strong domestic demand,” says Susannah Streeter, head of money and markets at Hargreaves Lansdown. “People dealing with the cost-of-living crisis here are coming to the capital rather than spending money abroad.”
One of the largest hotels in the works is the proposed conversion of more than 500 rooms at Vauxhall Cross Island towers, a mixed-use development designed by Zaha Hadid Architects. There are also megahotels that are stalwarts of the scene, such as the Park Plaza Westminster Bridge and the Hilton London Metropole. Each has more than 1,000 bedrooms.
On the lower end, budget hotel chain Travelodge has announced plans to open 80 hotels in the capital. Premier Inn has also been expanding. The chain recently opened a 393-room property at the Paddington Basin in central London, as well as a 400-key property in the financial district of Canary Wharf.
“London has the highest number of luxury hotels of any city, including the largest number of iconic independent luxury hotels,” says Tim Hentschel, CEO of HotelPlanner, adding he believes London sets the world standard in luxury service.
More stories like this are available on bloomberg.com
Bloomberg
Would you like to comment on this article?
Sign up (it’s quick and free) or sign in now.
Please read our Comment Policy before commenting.
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.
© 2023 Arena Holdings. All rights reserved.
Use of this site constitutes acceptance of our Terms & Conditions and Privacy Policy.