This increase will be driven by an uplift in budget and five-star hotel accommodation across the capital, which will add 17,769 rooms (from the current figure of 138,769) across the capital over the same period.
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% over the next three years. At the other end of the spectrum, the next three years will also see 19 five star properties open, increasing the hotel stock in this category by 22%.
“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 hote,” says Tracy Halliwell MBE, director of Business Tourism and Major Events at London & Partners.
“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.”
Elevated business and leisure visitor numbers for London have been reflected in record occupancy levels across the city’s hotels. London occupancies have averaged 80% or above since 2006 according to PwC, and their UK hotels forecast 2016 predicts a decade high of 84% this year (the Rugby World Cup having provided a further boost).
“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,” comments Alan Gordon, director of AM:PM. “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% 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.
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.