London’s Hotel development Pipeline

  • Published by Ozgur Tore

London SkylineThe 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 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.

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.

Featuring 453 bedrooms, a dedicated conference centre with 20 multifunctional meeting rooms and a 3,000sqm ballroom, which will hold up to 3,000 delegates the InterContinental London – The O2 is due to officially open its doors in January. The hotel will be on the doorstep of The O2 in east London and will include a spa, an indoor pool, two restaurants, a hotel bar and an 18th-floor Sky Bar, offering panoramic views across the Thames to Canary Wharf and beyond.

Also in east London, the Curtain Hotel and Members Club Shoreditch, which will feature 120 warm and spacious guest rooms including six suites, each with natural light, hardwood floors, steam showers, and bespoke and original artwork from some of London and New York City’s leading contemporary artists. Nobu’s first London hotel will house 143 bedrooms and a statement restaurant: a dramatic five metre high space in the basement. The five storey hotel includes its own garden, while rooms are clustered around a central bathroom screened off by a full-height curved unit.

Park Plaza Hotels & Resorts will open two London properties in 2016. Park Plaza London Waterloo will have 494 rooms and offer a swimming pool, spa, restaurant and bar. Opening in early 2016, the Park Plaza Park Royal hotel in west London will offer four star accommodations over six storeys, with a bar, restaurant, gym and conference facilities on the ground floor.

On the doorstep of the Tower of London will be the new Four Seasons Hotel London at Ten Trinity Square. The existing structure of Ten Trinity Square, a grand Parisian beaux-arts building, is being meticulously restored and upgraded. The hotel will occupy the lower ground to the third floors of the building, with 100 guest rooms and suites, two gourmet restaurants, a grand lobby bar, and a spa and fitness center.

New budget accommodation for the city will include eight new Travelodge hotels including London Richmond Central and London Finsbury Park. Premier Inn is also expected to open three properties during 2016, including London Sidcup, London Archway and the hub by Premier Inn at London Spitalfields, Brick Lane Hotel.


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