By Rob Starr, Content Manager, Big4.com
Commenting on the outlook for the London luxury hotel market, Liz Hall, head of hospitality and leisure research at PwC, said:
“Research by PwC shows that nearly 4,000 new luxury rooms have become available since the successful bid to host the Games was announced in 2005 and the end of this year; that is a 33% increase. 5 star hotels now account for around 12% of London’s rooms (some 14,000 rooms) and there are yet more still to come.
“Looking at recent performance, luxury hoteliers tell us “so far so good”. In fact Luxury has outperformed expectations in the 10 months to October and is holding up well, especially given all the extra supply.”
Her comments build on the finding that 2012 saw the UK’s largest room supply increase from new developments in the last decade. In London, the 2012 Games catalysed development on a scale unlikely to be seen again. Still Hall is cautious.
“With no major events taking place in London in 2013, the question is, where will demand come from?,” he says. “Will it be post games global awareness, emerging market visitors and the proposed new streamlining of the Chinese visitor process?
“London’s luxury hotel sector has a challenge on its hands. But the city is a global gateway with increased global awareness after the 2012 Games and continues to compete well with the other major cities in the world when it comes to top end hotels.”