PwC's European Cities Hotel Forecast for 2014 predicts that London's hotel sector will continue to dominate the European hospitality industry for many years to come.
London would be second in RevPAR growth in 2014 and first in 2015, according to the study, with 3.8 percent and 5.2 percent growth, respectively, ahead of the 17 other major European cities studied. real estate agent
The figures come after a successful year for London's hotel industry in 2013. According to data from Statista, the average daily rate of hotels in the capital increased by 12.7 percent during the year, rising from £122.70 in Q1 to £138.26 at the end of the year. At the same time, according to Statista, occupancy increased from 75.2 percent at the start of the year to 81.1 percent in the fourth quarter.
With a RevPAR increase of 5.2 percent in 2015, London hotels will lead Europe (PwC)
In 2013, the average daily rate for hotels in London increased by 12.7 percent (Statista)
One Capital's Chief Executive Officer, Zeeshaan Shah, says, "While the overall picture for the London hotel industry has been positive in recent years - a pattern that has continued into 2014 - the budget segment of the market has thrived. Budget hotel accommodations are being redefined through innovations such as 'all inclusive' packages and new brands such as ibis Styles from Accor's ibis portfolio."
Budget hotels from leading brands are definitely benefiting from London's popularity, attracting everyone from visitors to business professionals. Within the industry, competition has raised standards to the point that the term "budget" can only be used to describe their price point. For example, Ibis Styles is a non-standardized brand that includes establishments with distinct personalities in the heart of major cities, with a vibrant, bright, and energetic style complementing an all-inclusive package that includes breakfast and internet access.
The ibis Styles Hotel, Greenwich Peninsula, which is being built through a joint venture between Cherif Investment Properties (the Beaverbrook Family Office's property development arm) and London-based development and private equity firm One Capital (with One Investments as the master agent), has just opened for investment, much to the delight of those interested. The cost of an investment room ranges from £134,995 for a double to £147,995 for an executive room to £179,995 for a family suite. Over the next five years, accumulated returns are expected to hit 65.63 percent.
The ibis Styles Hotel, Greenwich Peninsula, is located just ten minutes from London City Airport and is part of a major redevelopment project on the Greenwich Peninsula that will see a £5 billion investment overseen by the London Mayor's office. It is one of only two budget hotels on the peninsula, and it is well placed to attract international tourists visiting London, domestic tourists visiting the O2 and other local attractions, and business professionals visiting the city.
Zeeshaan Shah of One Capital sums up, "When it comes to hotel investment in London, Greenwich is the place to be right now. Greenwich is already popular with everyone from family groups to international business travelers, thanks to the ongoing construction work there. Being home to "the world's busiest music venue" and having London on its doorstep ensures that Greenwich is already popular with everyone from family groups to international business travelers. Greenwich Peninsula will be exciting for this vibrant area of London, with so much to give already, the effects of the latest redevelopment work, and the opening of the ibis Styles Hotel."