Analysis
facilities and curated local experiences. These changes serve dual purposes – meeting the evolving needs of guests while unlocking new revenue opportunities. Looking ahead, adaptive reuse is expected to become a central feature of London’s hotel development pipeline. With high land costs and limited new development space, converting underused offices or heritage buildings into hotels offers a sustainable alternative. Reuse can cut development costs, preserve architectural character and reduce embodied carbon, notes Kirkpatrick. The National Planning Policy Framework supports such projects, with tdi
studies esti timat ngtiig up to a 50% 50% reduct tiion in emissions
compared with new builds. However, not every building is viable for conversion – structural limitations or unexpected infrastructure upgrades can drive up costs.
Leisure-led recovery Leisure travel continues to drive London’s hotel performance, accounting for around 75% of stays. International visitors – especially from the US – are returning in force, with arrivals in 2024 up 75% on pre- pandemic levels and significantly higher average spend. Events like the Taylor Swift Eras Tour at Wembley have led to RevPAR spikes of 14%, underlining the need for operators to align pricing and availability with the city’s dynamic event calendar. Although corporate travel volumes remain below
pre-pandemic levels, average spend and length of stay have increased. Agile working means business travellers are consolidating meetings into longer, more purposeful trips. These extended stays reduce housekeeping costs and boost profitability. Hotels near office hubs are responding with tailored meeting packages, flexible workspaces and analytics-led promotions aligned with corporate demand cycles. London’s hotel sector now has two pillars to hold it up: resilience and reinvention. Strong top-line growth has reignited
Visits to London by type Visits
17 Nights 13 Spend 23 020 Corporate Leisure: Holiday 40 % of the total Leisure: Visiting friends and relatives
London hotel room total supply and pipeline Rooms, thousands
170 165 160 155 150 145 140 135 130
Forecast Other Source: STR Global 44 49 60 Source: Visit London 51 33 19 80 24 9 10 9 100
2019 2020 2021 2022 2023 2024 2025 2026 2027 Existing rooms
Net new rooms
investor interest, but long-term success will depend on agile responses to rising costs, regulatory changes and shifting guest behaviours. By embracing sustainable development, digital innovation and adaptive reuse, the capital’s hotels are well- positioned to thrive in a rapidly evolving global landscape. ●
Hotel Management International /
www.hmi-online.com
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Greens87/
Shutterstock.com
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