The Caterer
Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

London hotels record a 2% rise in profitability

21 January 2016 by

London hotels recorded a 2% year-on-year increase in profitability during 2015, largely due to the Rugby World Cup.


Averages room rates during October, at the height of the Rugby World Cup, grew by 7.3%, compared with the same month in 2014.

Joe Stather, intelligence manager, EMEA, for CBRE Hotels, said that during the third quarter of 2015, the London hotel market was facing negative growth by the end of the year, largely due to economic uncertainty in China and Russia and a 4% increase in new hotel stock.

"In Q4 however, with over 2.5 million visitors coming to the UK to watch the Rugby World Cup, and three out of the 13 rugby stadia being in the capital, there was an explosion in demand for London's hotels, returning the sector to profitability by year end," he explained.

Hotel transactions throughout the year were also strong. Notable deals brokered by CBRE Hotels included the sale of the 203-bedroom Regency hotel in Kensington, for more than £100m. The fourth quarter also saw the launch of 12 new hotels assets, including the 292-bedroom London Hilton Bankside.

Stather added: ""London is one of the few UK markets, owing to high actual trading performance, that can support new hotel development, despite rising construction costs."

London's Regency hotel in Kensington sells for £100m >>
Openings: Hilton London Bankside >>
CBRE predicts record investment levels in European hotels >>

TagsHotels
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking