London's Mayfair as the world's most expensive area to stay in, says report
London is the world's most expensive city to rent a five-star hotel room, serviced flat or rental apartment, according to a new report from estate agent Wetherell.
The Sleeping in London study found that the average cost of renting a five-star hotel room in London is £487 per night, compared to £361 in Geneva, £283 in Los Angeles, £259 in Tokyo and £131 in New York.
The report was put together using data collected from a selection of five-star hotels in Mayfair, London's most expensive hotel district. However, it does not include several hotels which arguably have some of the highest room rates in the capital, including the Mayfair, the Connaught, Claridges, Café Royal, the Dorchester and the Ritz.
According to the report, the most expensive hotel room is the royal suite at the InterContinental London Park Lane, with a rate of £11,700 per night.
In order to compare the price of five-star hotels with serviced flats and rented apartments, the report looked at weekly rates as the rental sector tends not to provide offer daily rates. While the average weekly rate for a suite in a five-star Mayfair hotel is £14,347, the cost of a serviced apartment is £2,277 and a private rented furnished apartment is £1,738.
The report noted that hotel room rates and private apartment rental values have increased in line with each other, with Mayfair apartment rental values up by 33%, London hotel rates (up by 25%) and Mayfair serviced apartments rates (up by 25%) since 2008.
Peter Wetherell, chief executive of Wetherell, said the most "game changing" recent development in the London luxury property and hospitality market is the emergence of branded residences.
"Branded residences are the ultimate synergy vehicle and are highly lucrative since they can tap into a range of revenue streams," the report added. "This market is massively undersupplied in the capital at present with less than a dozen branded residences across inner London."
The report concludes that the success of luxury branded residences such as One Hyde Park in Knightsbridge (Mandarin Oriental), Bulgari Residences & Hotel in Knightsbridge, and the Residences at W Hotel (Starwood Hotels), is likely to expand into the three and four star hotel sectors.
