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London hotel supply set for big growth

View over the House of Parliament from the London Eye

Commercial property specialist Savoy Stewart has found that London accounts for 40 per cent of the development pipeline for hotels in the UK, with Manchester and Edinburgh following suit.

In an analysis of the Knight Frank UK Hotel Development Opportunities 2018 report, Savoy Stewart explored the sector in detail to create a picture of hotel supply over the next three years.

The firm says London currently has 14,699 rooms in development for the future, the highest number by a wide margin.

The capital is followed by Manchester with 2,895 rooms expected and Edinburgh with 2,122 rooms in the pipeline. Savoy Stewart says such growth can largely be attributed to the regeneration, transformation and reshaping of several UK cities through joint public and private initiatives.

So far in 2018, Belfast has seen the biggest increase in new hotel supply and properties under construction as a percentage of supply at 34 per cent. Meanwhile, Glasgow (18 per cent) and Manchester (17 per cent) have also experienced healthy growth.

Comparatively, Hull has experienced the smallest increase in supply at 2 per cent, while Newcastle (7 per cent) and Leeds (8 per cent) have seen similar low levels of growth.

Overall, the UK hotel market is expected to grow by 3.3 per cent in 2018, equating to more than 21,000 new hotel rooms.

For the future, Glasgow (1,431), Birmingham (1,371) and Liverpool (1,161) will round out the five cities that will see the greatest increase, while Hull has just 35 new rooms in the pipeline.

savoystewart.co.uk

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