Despite economic gloom stories, according to property agents Knight Frank, UK Hotel Investment is healthy. In an article based on report produced by London Loves Business, 2017 saw the opening of over 15,000 new rooms. Further growth is forecast for 2018 with over 20,000 rooms.
Budget hotel investment leads the way, accounting for 69% of new build rooms and 65% of existing hotel extensions. In 2018, over 8000 budget rooms will be added. The branded budget sectors growth continues, now accounting for about 25% market share.
During 2017, London increased by 4% with a rise of over 5 per cent forecast. The focus of hotel building is no longer just on London. In 2018, 13,000 of the rooms opening will be in the regions.
4 Star Hotels
This sector is expected to grow in 2018, rivalling the budget sector for overall market share. 4 star together with serviced apartment will account for a similar number of new builds.