The 7,000 new hotel rooms predicted to open in London this year will be ore than double last year’s total, putting pressure on existing stock. Across the UK, 16,000 hotel rooms are expected to open this year, compared with 10,000 last year.
RevPAR growth in Q4 2015 was far lower that the 19% average growth recorded in Q4 2014, with occupancy in the same period falling almost across the board.
The majority of development planned for the next three years is in the budget sector, ie two-star and below. 9% of the development pipeline is in apartments, the same as five-star hotels.