There are 210 new hotels in the development pipeline for London as investors remain optimistic about the capital's market potential for growth post-Brexit.
That's according to a new study by private wealth law firm Boodle Hatfield. Almost a quarter (48) of the hotels with planning permission or already under construction in London are located in Westminster, adding more than 6,800 new bedrooms. Luxury and boutique hotels account for 74% of the planned new hotels in Westminster.
These include: the former US Embassy in Mayfair, which is being developed into a 137-room, £1b Rosewood hotel; a Nobu hotel is being built in Marylebone that is part funded by Hollywood actor Robert De Niro; and the Londoner on Leicester Square, which will have 350 rooms and two cinemas.
A further 12 hotels are planned for the Heathrow area.
The UK's hotel market is one of the few sectors of the UK economy to have benefited from the Brexit-related slump in sterling, the law firm said, because the decrease in value of the pound has made it cheaper for international tourists to visit the UK and has also encouraged more "staycations".
Rajeev Joshi, partner at Boodle Hatfield, said: "Investor appetite in the London hotel market is holding up. But investors will want to know that this new supply of hotels can be soaked up by increasing demand.
"For tourism to continue to grow, the UK needs to ensure that post-Brexit, we do not start to be seen as a less convenient destination for tourists from the EU or from further afield. Greater investment in infrastructure will be a key part of this. Accelerating the delivery of projects such as the third runway at Heathrow and the Crossrail would help."
Top 10 areas for hotels currently in development across London:
Hotels with planning permission
|Hillingdon (Heathrow Airport)|
|Kensington & Chelsea|
|Hammersmith & Fulham|