East London boroughs lead way in capital's hotel development
The regeneration of east London is increasingly attracting hotel development, according to a new report from property company Colliers International.
As a result, the London Hotel Index highlights that the City of London and Tower Hamlets are the most active boroughs in the capital when it comes to hotel growth.
The City of London has confirmed plans for additional 1,900 extra rooms, which will see its total number of bedrooms grow by 29.2% to 8,476 by 2019; while Tower Hamlets has an additional 1,700 rooms in the pipeline, increasing its total by 25.4% to 8,507 during the same period.
In contrast, the Kensington and Chelsea has almost reached full capacity, with its current tally of 14,702 bedrooms in 183 hotels expected to grow by only 0.2% (30 rooms) by 2019.
Westminster, which currently has the largest supply of hotels with 37,829 bedrooms, is expected to expand in the next three years by just 5.5%.
Colin Hall, head of London hotels agency at Colliers International, said "It's been near impossible for hotel investors and developers to find the space to create new hotels in Kensington and Chelsea. The residential market has remained extremely strong over the past few years, keeping prices high and supply low, and the grand period houses that make up much of the property stock in the area is difficult to convert.
"Whilst central and west London have suffered from a lack of new supply, rising regeneration opportunities in the east has tempted hoteliers to seek out new areas in which to invest, particularly the City and Shoreditch."
Recent new hotel openings in the east of the capital include Citizen M and the Courthouse hotel, with the 252-bedroom Ned, from a joint venture between Soho House & Co and the US-based Sydell group, leading the launches planned for 2017.
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