It looks like we were on to something when we wrote about London’s budget hotel trend back in 2014. New information has revealed that budget hotels accounted for the majority of new rooms over the last few years.
According to the JLL/London and Partners ‘London Hotel Development Monitor‘, more than half of the 18,000 new hotel rooms since 2012 are in the budget sector. Across the whole of London, budget hotels now account for 20 per cent of all hotel rooms. A third of the rooms scheduled to be completed this year are also in budget hotels – although, we’ll see just how many of them are actually finished by the end of the year.
Hotels in London used to be much more centrally-focused, but they have spread out much more over recent years.
Many guests, from business travellers to families and young adults, want a more affordable room. They don’t want to spend the money on a central hotel when they stay further out and either walk around or make use of public transport. The general trend is for hotels moving further east, particularly into Shoreditch, where many hotels have been and are being developed.
Many guests are also not that concerned about having a lot of space in their room or extra amenities. Not everyone plans to spend a lot of time at their hotel, especially if they are in London for a specific event. Cleanliness, safety, quiet and free WiFi are often more important than a gym and restaurant. They are willing to give up these things if it gets them a better located hotel for less. This is what brands like Z Hotels and Tune Hotels do.
Affordable hotels we should see opening this year include Moxy London Royal Docks. Two more Moxy hotels will open in London in 2017.
Outside of the trendy chains for Millennials, a new Premier Inn also opens this year on Tottenham Court Road.
Luxury hotels have their place but it’s the inexpensive options many people are after. With the average double room in London costing £135 a night, it’s no wonder so many are searching for budget options.