Visit London Predicts Hotel Growth for 2007

Hotel growth levels look set to pick up steam in 2007 following a subdued 2006, predicts Visit London in the latest Hotel Development Monitor.

Interest from developers in the London market has remained exceptionally strong, despite relatively slow hotel growth in 2006, and increased presence in London is still high on many operators’ agenda for the coming year.

Visit London’s predications for 2007 indicate a pickup in new supply growth: new build completions are likely to increase relatively steeply this year, with some 2,700 new rooms expected to open, as well as increasing segmentation adding to the traditional market segments, such as budget and luxury.

The company also forecasts increased brand penetration across all market segments, growth in serviced apartment accommodation, demand for hotel assets to remain very strong on the back of Private Equity interest, cash rich firms and Individuals, and property funds, and hotel development costs to increase steeply reflecting competition for prime sites and rising construction costs.

Visit London is the official visitor organization for London. Its role is to promote London as the world’s most exciting city, targeting domestic and overseas leisure and business visitors as well as Londoners.