For a comprehensive review of the Europe market, click below:
HVS In-Depth Europe Hotel Valuation Index:   2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001

London has developed into one of the world’s leading business, financial and cultural centres, and the city’s influence on politics, education, media, fashion and arts contributes to its status as a major global city. As one of the main financial hubs in Europe, and with its rich cultural heritage, London benefits from both leisure and business demand.

After the pound sterling depreciated significantly against the euro in 2016 following the EU referendum, London benefitted from increased leisure travel from source markets such as the USA and Europe. However, that was counterbalanced by decreased business activity due to the uncertainty in the market. Up until the negotiations for the withdrawal agreement were concluded in December 2020, the market experienced some uncertainty in terms of investment activity but also on the free movement of people, as this economic freedom largely impacts the payroll costs of UK hotels and the accessibility of each other’s markets to UK and European investors.

During 2018, occupancy levels increased and allowed London to finish the year with its highest annual occupancy level of the past decade, despite a slight dip in international arrivals. In 2019, arrival figures grew again to similar levels achieved in 2017 (approximately 34 million), while occupancy remained stable and average rate gained nearly 3.0% compared to 2018. Arrivals grew at a compound annual rate of 6.1% between 2010 and 2019, driven by domestic and international visitation alike. Following the pandemic-induced decline in 2020, demand started to strongly recover from the summer of 2021. In 2022 , while average rate surpassed 2019 levels by 5%, in real terms, occupancy remained around 17% below, which resulted in RevPAR being 13% lower, in real terms. In 2023, the London market benefitted from a strong increase in occupancy of around 15%, reaching around 80% and so practically back to the 2019 level. Average rate grew broadly in line with inflation during 2023, therefore delivering good results for the year in terms of RevPAR.

Supply in London currently stands at close to 1,500 properties comprising almost 140,000 rooms. There are currently 128 properties in the pipeline for London, all expected to open by 2028, an increase of 11.8% on the current supply. These hotels will bring nearly 17,000 new rooms to the market. Some prominent new openings include the 110-room Six Senses in April 2024, the 357-room art’otel Hoxton in May 2024, the 146-room Rosewood London in March 2025 and the 179-room Park Plaza Victoria in April 2025.

Transaction levels in London, like most other European cities, were subdued in 2020. However, investment activity and the number of transactions started to increase in London in the second half of 2021 and throughout 2022. In 2023, the number of transactions in London decreased by around 20%, a trend that was seen in most European markets. Notable transactions in 2023 include the 75-room Native Bankside for a reported amount of €47 million (€623,000 per key), the 89-room Apex London Wall Hotel for a reported amount of €62 million (€698,000 per key) and the 132-room Hilton London Hyde Park for a reported amount of €57 million (€435,000 per key).

2023 London hotel values increased by 0.9% in euro terms and decreased by 2.7% in local currency, as reported in our 2024 European Hotel Valuation Index, as investors continue to grapple with the increased cost of debt over the year.

ADR, Demand, Occupancy, RevPAR, and Supply Projections:

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Change In Value For Market: (€Euro)

London RevPAR Change (€Euro)

London RevPAR (€Euro)

For more information, please contact:

	Sophie Perret, MRICS, MBA Managing Director [email protected] +44 0 2078787722 (w) +44 0 7725781037 (m)
	Julia Dzerkach Associate [email protected] +44 0 2078787742 (w) +44 0 7912240964 (m)
	Clemence Sennavoine Associate [email protected] ++44 0 7736273439 (m)