London Now the Battleground for Budget Hotel Growth

The total supply of branded budget hotels in London has increased by tenfold in the last fifteen years and has the capacity to grow even further, according to the latest issue of Visit London´s Hotel Development Monitor.

Currently London has just over 13,000 budget rooms, which accounts for around 13 percent of total London hotel supply.

In other parts of the U.K., budget penetration rates are close to 20 percent, implying that London still has a 7 percent growth opportunity. This renders in a potential 8,000 rooms that could be developed before budget supply in London becomes mature.

The London Hotel Development Monitor figures also reveal that major operators account for the lion´s share of this market.

Although Premier Travel Inn holds a strong lead with a 29 percent share, others are gaining ground. Currently Travelodge is ranked second with 19 percent of market share, followed by Intercontinental, Accor, Choice and Cendant.

“Less than fifteen years ago if you wanted to stay in cheap accommodation it was either a B&B or a roadside service station,” said Visit London´s Business Analyst Jamie Talmage. “These days, good quality budget hotels are helping to underline a good value message in London. There appears to be an opportunity for even further growth in London´s supply over the next few years.”

Since 1989 Visit London has been compiling data about new hotel developments across London. This information details new hotel openings, as well as potential developments which are likely to be constructed.