London hotel market set to boom
Savoy Stewart, commercial property specialists, has found that London accounts for 40% of the development pipeline for hotels in the UK, just in front of Edinburgh and Manchester.
Using the analysis from the Knight Frank UK Hotel Development Opportunities 2018 report, Savoy Stewart explored the sector in detail, to create a picture of what hotel supply would look like over the next three years.
Savoy Stewart says that there are currently 14,699 rooms in development for the future, in London alone. This is the highest number by far.
Manchester follow with just 2,895 rooms, and Edinburgh with 2,122 rooms expected in the pipeline. Savoy Stewart say this growth is largely attributed to the regeneration, transformation and reshaping of several UK cities through joint public and private initiatives
This year so far, Belfast has seen the biggest increase in new hotel supply and properties under construction, at a percentage of supply at 34%. Meanwhile, Glasgow (18% supply) and Manchester (17% supply) have both experienced a healthy growth this year.
Hull experienced the smallest increase, in supply at just 2%, while Leeds (8%) and Newcastle (7%) have seen similar low levels of growth.
Overall, according to figures the UK hotel market is expected to grow by 3.3% in the remainder of 2018, which equates to more than 21,000 new hotel rooms.
Along with London and Manchester, Glasgow, Birmingham and Liverpool will join to make up the 5 cities that will see the greatest increase in hotel rooms:
All while Hull has only 35 new rooms in the pipeline.