London high end hotel pipeline promises US$5.6 billion of projects

Pictured: rendering of Park Hyatt London River Thames’ lobby.
UK capital London remains a highly active premium hotel market, with more than US$5.6 billion of projects underway, according to current THP records.

The database shows that at least 92 high end developments are on the slate, encompassing nearly 16,600 keys.

2023 boom

This year will see the highest number of openings presently counted in the pipeline, with 38 due – equivalent to 41% of the total. This means that at least 5,677 rooms will come online in 2023. 

Around 36% of the high end pipeline is currently under construction (33 sites), with a further 22%/20 projects in a pre-opening phase.

Supply stall

At the moment, the completion rate seems to drastically drop in 2024, with only 15 additions slated, equating to 3,612 rooms.

Another 10 hotels/1,773 keys are scheduled for 2025, while the remaining 29 projects are either due further in the future or have yet to be designated a delivery date.

Newbuild majority

Given that the London hotel market is very mature, it is slightly surprising that more than half its planned premium additions are newbuilds – 52% to be precise, equating to 48 sites.

At least 25 developments are conversions of existing properties, while 15 are refurbishments and four are extensions.

In terms of segments, four star sites are predominant, with at least 55 upcoming, representing 60% of the pipeline. The remaining 40%/37 hotels are five stars.

Independent city

More than half (54%) of London developments are at independent hotels, equivalent to 50 sites. The remaining 46%/42 branded property count is jointly headed by Hyatt Hotels Corporation and Whitbread Group, with at least five high end projects each.

The Hyatt stable comprises two Hyatt Regencys, two Park Hyatts and one Andaz hotel. Whitbread’s premium slate is entirely for its hub by Premier Inn strand. Hilton Worldwide comes third in the major group stakes with at least four sites comprising three Hampton by Hiltons and one Waldorf Astoria.

Ones to watch

Two significant forthcoming London hotels are within mixed use developments which share a ‘One’ moniker. One Nine Elms will consist of two towers measuring 200 m and 160 m, including private residential units, affordable housing units and the five-star luxury Park Hyatt London River Thames occupying the first 18 floors of the River Tower. The 203-key hotel will feature a luxury spa, ballroom and clubhouse restaurant, with delivery slated for Q4 2023.

For the One The Thames development, also in central London, Arundel Great Court Hotel will be sited in the south of the estate’s two buildings. The 113-room accommodation is due to open in Q1 2025.