Best Bet London: Capital sees 10% increase in Hotel Rates
For those considering making an investment in the lucrative hotel market then the latest data from the trivago Hotel Price Index suggests that London remains one of Europe’s best bets as hotel rates in the Capital rose by 10% in the last month alone.
Compared to February 2011, average hotel prices in London have risen by an impressive 10% in March to £150 per night eclipsing other popular European cities such as Amsterdam (£117), Berlin (£87), Paris (£131) and Rome (£109).
Double-digit growth was not uniform across the UK however with overnight room rates falling 1% in Liverpool and Newcastle and 6% in Birmingham and Edinburgh.
Steven Worboys, MD of Experience International, which is marketing a number of 4* hotel room investments in the Capital, comments,
“Growth in hotel rates is certainly positive news for existing investors but also an encouraging indicator for potential buyers. As the global economy starts to slowly recover we are seeing an increase in both business and leisure travellers to London which is generating demand for accommodation and in turn is driving room rates higher.”
When compared to global hotel markets London also compares favourably with the Hotel Price Barometer by hotel.info ranking the Capital the 8th most expensive city in the world in terms of average room rates with an increase of 7.04% in Feb 2011 compared to the same period in 2010.
Furthermore the latest hotel forecast for 2011 from PwC reveals that there will be a further gain of 6.1% in average room rates and occupancies should climb to around 84%, a 2.2% increase over 2010, taking occupancy rates to levels last seen in the booming mid 1990s.
With the Capital expecting a boom in visitors for the impending Royal Wedding and some 500,000 forecast to attend the 2012 Olympic Games, the London hotel market presents a highly attractive investment opportunity.
One new hotel currently under development in north London, Park Inn Wembley, is receiving particular interest from investors both in the UK and abroad, especially the Far East. Located in one of London’s fastest growing sporting & leisure destinations, Park Inn Wembley offers 4* hotel rooms at 28% below official RICS commercial valuation and delivers double digit net returns of up to 11.5% per annum.
Fully managed and operated by the major global hotel brand Park Inn, which is currently undertaking a significant marketing campaign in the UK, this hands-off investment is available with a deposit of £55,000 with non-status finance and VAT paid saving you £28,000.
For more information on securing a hotel room at Park Inn Wembley please call the experts at Experience International today on + 44 (0) 207 321 5858 or visit www.experience-international.com.