Europe -  London, United Kingdom

For a comprehensive review of the Europe market, click below:
HVS In-Depth Europe Hotel Valuation Index:   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 the arts contributes to its status as a major global city. As the biggest financial hub 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 in June, 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 free movement of people, as this economic freedom largely impacts payroll costs of UK hotels and 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 (approx. 34 million), while occupancy remained stable and average rate gained nearly 3% compared to 2018. Arrivals grew at an annual compound growth rate of 6.1% between 2010 to 2019, driven by domestic and international visitation alike. Like most other European cities London experienced a severe decline in 2020 owing to the impact of COVID-19.

Supply in London currently stands at more than 1,500 properties comprising almost 132,000 rooms. There are currently more than 90 properties in the pipeline for London, all expected to open by 2024, an increase of 6% on current supply. These hotels will bring nearly 15,000 new rooms to the market, albeit some are likely going to be delayed due to COVID-19. Some prominent new openings include the 189-room Peninsula hotel set to open in 2022, as well as the 137-room Rosewood at Grosvenor Square, to open at the end of 2023.

Transaction levels in London, like most other European cities was subdued in 2020. However, London managed to achieve the highest investment volume at £1.4 million compared to other cities in Europe, albeit down 27% compared to 2019. The most notable transaction was the sale of the iconic Ritz Hotel for a reported sum of £700 million (£5.1 million per room).

London hotel values decreased by 13.8% in euro terms and 12.7% in local currency in 2020, as reported in our 2021 European Hotel Valuation Index.

Change In Value For Market: (€Euro)

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

For more information, please contact:

Sophie Perret, MRICS, MBA
[email protected]
  • +44 20 7878 7722 (w)
Nikola Miljković
[email protected]
  • +44 20 7878-7721 (w)
  • +44 7 593572865 (m)