London is set to boost its luxury hotel supply ahead of the 2012 Winter Olympic Games, striking gold with revenue collection from the tourists expected to flood the city.
According to the latest research from PricewaterhouseCoopers (PwC) there will be a 27 percent increase in the luxury room stock, with 2,400 rooms in 18 hotels under construction or planned to be completed in the next year.
In the quest for higher profit a higher suite to room ratio is emerging in some properties. The Four Seasons on Park Lane has recently reopened with fewer bedrooms and more suites, with a suite to room ratio of around 31 percent (around 192 bedrooms including 45 suites), according to PwC.
London is a key gateway city and a “must be-in” destination for many operators. Some have yet to get a foothold; others are keen to open a second or third hotel. For example Four Seasons has recently announced its Heron Plaza plans.
Joining the ranks of the recently reopened Savoy and Four Seasons Park Lane will be the 294-room Corinthia Hotel on Whitehall Place opening imminently; W Leicester Square, planned to open this week with 192 rooms; and the Renaissance at St. Pancras, slated for a May opening with 283 rooms.
However, PwC warns that the post-Olympic fallout from the hotel boom may be less attractive.
“While absorbing the new rooms may not be too much of an issue in central London post Olympics, it may be more difficult for sites further out of the central tourist core and business districts,” says Hall, according to a PwC press release.
“Luxury hotels are often the most volatile and cyclical of all hotel segments and the first to take a dive when times are bad due to a high cost base and high service levels.”
London’s luxury room rates average at 254 pounds (US$407) in 2010, compared to 228 pounds in the same period in 2009, which compared to an average of 127 pounds for all London hotels, according to PwC.
According to the latest research from PricewaterhouseCoopers (PwC) there will be a 27 percent increase in the luxury room stock, with 2,400 rooms in 18 hotels under construction or planned to be completed in the next year.
In the quest for higher profit a higher suite to room ratio is emerging in some properties. The Four Seasons on Park Lane has recently reopened with fewer bedrooms and more suites, with a suite to room ratio of around 31 percent (around 192 bedrooms including 45 suites), according to PwC.
London is a key gateway city and a “must be-in” destination for many operators. Some have yet to get a foothold; others are keen to open a second or third hotel. For example Four Seasons has recently announced its Heron Plaza plans.
Joining the ranks of the recently reopened Savoy and Four Seasons Park Lane will be the 294-room Corinthia Hotel on Whitehall Place opening imminently; W Leicester Square, planned to open this week with 192 rooms; and the Renaissance at St. Pancras, slated for a May opening with 283 rooms.
However, PwC warns that the post-Olympic fallout from the hotel boom may be less attractive.
“While absorbing the new rooms may not be too much of an issue in central London post Olympics, it may be more difficult for sites further out of the central tourist core and business districts,” says Hall, according to a PwC press release.
“Luxury hotels are often the most volatile and cyclical of all hotel segments and the first to take a dive when times are bad due to a high cost base and high service levels.”
London’s luxury room rates average at 254 pounds (US$407) in 2010, compared to 228 pounds in the same period in 2009, which compared to an average of 127 pounds for all London hotels, according to PwC.
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