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| Hospitality Today | Christmas 2016 / January 2017
“ Whilst central and west London have suffered from a lack of new supply, rising regeneration opportunities in the east has tempted hoteliers to seek out new areas in which to invest, particularly The City and Shoreditch.”
The City of London has confirmed plans for over 1,900 extra rooms, which would take the borough to a total of 8,476 hotel rooms available by 2019, whilst Tower Hamlets has over 1,700 extra rooms in the pipeline. Westminster has the most hotel rooms, at over 37,000.
Hackney, which includes Shoreditch and Old Street, currently has only 2,200 active hotel rooms available, however it has the most active development pipeline, with 50 % growth expected by 2019, almost double the pipeline in The City( 29 %).
Hall continues:“ The popularity increase in the east of London has not gone unnoticed by hotel investors. We’ ve recently seen both Citizen M and The Courthouse Hotel open their doors in Shoreditch, and many other well known brands are looking to establish themselves here as well.”
Citizen M Courthouse Hotel, Shoreditch
South West Hotels on course for more profit
Meanwhile profit per room at hotels in the South West fell by 5.0 % year-on-year in October, but remained on course for a third consecutive year of growth in 2016, according to the latest data from HotStats.
Further to the growth in 2014(+ 9.5 %) and 2015(+ 11.7 %), GOPPAR( Gross Operating Profit per Available Room) at hotels in the South West has increased by 2.6 % year-to-date 2016, to £ 33.02.
Hotels in the South West have recorded a 30.9 % increase in profit per room in the 36 months to October 2016, to £ 32.51.
International tourism boosts Edinburgh hotels
Hotels in Edinburgh recorded an 18.4 % increase in profit per room in October, which was primarily fuelled by growth in international visitors.
As a result of top line increases in both room occupancy(+ 1.9 %) and achieved average room rate(+ 10.1 %), hotels in the Scottish capital recorded a 12.7 % increase in RevPAR( Revenue per Available Room) for the month, to £ 92.29.