London To Gain an Extra 7,000 Hotel Rooms Despite Decreasing Demand
London will see the opening of 7,000 hotel rooms this year, despite the fact that occupancy rates and demand remains relatively subdued. The findings by hotel consultants HVS in its Hotel Bulletin...
London will see the opening of 7,000 hotel rooms this year, despite the fact that occupancy rates and demand remains relatively subdued.
The findings by hotel consultants HVS in its Hotel Bulletin Q4, revealed that the amount of new hotel rooms in London will double compared to the previous year. Across the UK, some 16,000 new rooms will be made, up from 10,000 in 2015.
This, says the report, will put additional pressure on occupancy levels and achieved room rates. RevPAR growth across 12 UK cities was just 2 per cent in 2015 Q4, compared to a 19 per cent growth in the same period the previous year. London’s occupancy declined for the fourth consecutive quarter.
“The huge amount of openings planned for 2016 in London will be of concern to the city’s hoteliers who, while historically are used to robust performance, are currently experiencing limited demand growth,” commented HVS chairman Russell Kett.
“Flat or declining occupancy is historically followed by plateauing rates indicating that a peak in hotel market trading may nearly have been reached,” he added.
The findings are in stark contrast to the situation in Ireland's capital, where occupancy rates continue to grow and an extra 5,000 hotel rooms will have to be created in the next five years to satisfy demand.