link.png Sleeping in London: the luxury experience← Back

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A new report by Wetherell, estate agents specializing in Mayfair property, highlights the key traits of London’s luxury hotel market.
 
According to the “Sleeping in London” report, the UK’s capital has a grand total of 129,000 hotel rooms, 12% of which are 5-star, with most of the luxury hotels being located in Mayfair, Knightsbridge, St. James, Whitehall and Kensington. The average price for a one bedroom suite in a 5-star hotel in Mayfair is £2,050 a night, with the most expensive suite costing £11,700 a night.
Across luxury hotels, the main source of revenue is from room rental (72.9%), followed by food (12.8%) and drink (5.7%). Additional facilities such as spas make up the remaining income. 
 
The report highlights key trends in the market. Branded residences, whereby hotels are marketed under the hotels brand name, such as One Hyde Park or W Hotel are proving to be successful, and the concept could expand to 3- and 4-star hotels. Another emerging tendency is the similarity between luxury hotel suites and private rented flats, as both types of luxury accommodation focus increasingly on offering similar products from interior design to leisure facilities.
 
The report also suggests that there is a shortage of luxury hotels. London’s existing 5-star hotels have a high occupancy rate, with an average rate of between 78% and 80%, putting it on a par with Dubai or Paris. Peter Wetherell, the company’s CEO, said: “Our new report shows the astonishing strength of the recovery in values in the luxury hotel, serviced apartment and private rented markets in PCL since the global recession of 2007 to 2009.” And it seems as if this thriving market isn’t set to slow down for a while, as a whole wave of 5-star hotels, including the Beaumont and the Lanesborough, are set to open in London over the next year. 

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