While London's hotels buzzed with an 82.3% occupancy rate in late 2023, the city's hospitality engine—powered by over 414,000 diverse workers—is a story of resilient growth, ambitious investment, and ongoing challenges that define its vibrant landscape.
Key Takeaways
- In 2023, the London hospitality sector employed 414,000 people, representing 10.2% of total London employment
- London hotels had an average occupancy rate of 82.3% in Q4 2023, up from 78.5% in 2022
- 65% of hospitality workers in London are aged under 35, with 28% being full-time students balancing work and studies
- London hospitality sector generated £14.8 billion in GVA in 2023, supporting 1 in 8 London jobs indirectly
- Total revenue for London hotels reached £5.2 billion in 2023, a 15% increase from 2022
- Food and beverage sales in London hospitality hit £8.9 billion in 2023, with pubs contributing 35%
- London welcomed 19.2 million international visitors in 2023, boosting hospitality demand by 12%
- Domestic tourism to London generated 45 million overnight stays in hospitality in 2023
- Average length of stay for tourists in London hotels was 3.2 nights in 2023
- London had 1,300 hotels with 140,000 rooms in 2023
- Luxury 5-star hotels in London achieved 85.7% occupancy and £450 ADR in 2023
- Budget hotels in London grew by 8% to 450 properties in 2023
- London has 16,500 restaurants, with 4,200 Michelin-recognized or equivalent in 2023
- Pubs and bars in London numbered 7,200, serving 150 million pints annually in 2023
- Fine dining restaurants in London saw 11% revenue growth to £2.3bn in 2023
London's hospitality sector is thriving with strong growth but faces staffing and cost challenges.
Accommodation Sector
- London had 1,300 hotels with 140,000 rooms in 2023
- Luxury 5-star hotels in London achieved 85.7% occupancy and £450 ADR in 2023
- Budget hotels in London grew by 8% to 450 properties in 2023
- Serviced apartments in London numbered 25,000 units, occupancy 78% in 2023
- New hotel openings in London totaled 12,500 rooms in 2023
- Independent hotels represent 42% of London’s accommodation market, generating £1.1bn revenue 2023
- Average hotel size in London is 108 rooms, with chains dominating 65% market share 2023
- Housekeeping costs per room in London hotels averaged £25 daily in 2023
- 75% of London hotels implemented contactless check-in by end-2023
- Revenue from ancillary services (spa, gym) in London hotels: £650m in 2023
- London hostels had 92% occupancy peaks during summer 2023
- London serviced accommodation grew 15% to 35,000 beds in 2023
- Mid-scale hotels in London had RevPAR of £110 in 2023
- 92% of London hotels rated 4+ stars by guests in 2023 reviews
- Boutique hotels (under 100 rooms) numbered 650 in London 2023
- London hotels invested £800m in refurbishments in 2023
- Upscale hotels (4-star) dominated with 45% market share in London 2023
- Guest satisfaction scores for London hotels averaged 8.4/10 in 2023
Accommodation Sector Interpretation
London's hospitality scene spent 2023 sharpening its multi-tiered strategy: pampering the elite at £450 a night, efficiently housing the masses with booming budget and serviced options, and cleverly investing in everything from tech to spas to keep everyone, from hostel-hoppers to luxury guests, remarkably satisfied.
Employment Statistics
- In 2023, the London hospitality sector employed 414,000 people, representing 10.2% of total London employment
- London hotels had an average occupancy rate of 82.3% in Q4 2023, up from 78.5% in 2022
- 65% of hospitality workers in London are aged under 35, with 28% being full-time students balancing work and studies
- The sector saw 15,200 new hospitality jobs created in London between 2022 and 2023, primarily in food service roles
- Female workers constitute 52.4% of the London hospitality workforce, with higher concentrations in housekeeping at 85%
- Average hourly wage in London hospitality was £12.45 in 2023, 18% above the UK national average of £10.55
- 22% of London hospitality staff reported turnover intentions due to burnout in 2023 surveys
- Over 40,000 hospitality vacancies existed in London as of mid-2023, driven by post-pandemic recovery
- BAME workers make up 45% of London's hospitality employees, compared to 18% in the overall economy
- Training investment in London hospitality reached £250 million in 2023, focusing on digital skills for 25,000 workers
- Apprenticeships in London hospitality grew by 12% to 8,500 in 2023
- Zero-hour contracts accounted for 14% of London hospitality employment in 2023
- In 2023, London hospitality employment grew by 4.5% to 414,000 full-time equivalents amid recovery
- Hospitality staff retention rate in London was 72% in 2023, lowest in chefs at 65%
- 18,500 EU nationals worked in London hospitality in 2023, down 25% from pre-Brexit
- Diversity training reached 60% of London hospitality firms, focusing on 35,000 staff 2023
- Gig economy platforms employed 12% of London hospitality workers part-time 2023
- London hospitality saw 5.2% employment growth in Q1 2024 projections from 2023 data
- 28% of London hospitality managers had 10+ years experience in 2023
- Mental health support programs covered 45,000 workers in London hospitality 2023
- Overtime hours in London hospitality averaged 8 per week per worker 2023
Employment Statistics Interpretation
London’s hospitality sector thrives with youthful energy and promising growth, yet it grapples with a delicate balance of high turnover, persistent vacancies, and a workforce navigating the tightrope of burnout, all while investing ambitiously in its future.
Food and Beverage Sector
- London has 16,500 restaurants, with 4,200 Michelin-recognized or equivalent in 2023
- Pubs and bars in London numbered 7,200, serving 150 million pints annually in 2023
- Fine dining restaurants in London saw 11% revenue growth to £2.3bn in 2023
- Casual dining chains expanded to 1,800 outlets in London, average spend £28 per head 2023
- Vegan/plant-based options available in 68% of London restaurants in 2023
- Average covers per day in London restaurants: 250, with peak dinner 55% of total 2023
- Coffee shops in London totaled 3,500, generating £1.2bn revenue in 2023
- Food delivery partnerships boosted F&B revenue by 18% to £1.5bn in London 2023
- 1,200 new F&B openings in London in 2023, 40% international cuisines
- London pubs had average spend £22 per visit, with craft beer sales up 14% in 2023
- London F&B venues had 2.1 billion meals served in 2023
- Street food markets in London generated £250m revenue with 5 million visitors 2023
- Wine sales in London bars up 9% to 12 million bottles in 2023
- Fast casual eateries in London averaged £15 spend, 1,200 locations 2023
- London restaurants turned over £12.5bn in 2023, with independents at 55%
- Cocktail bars in London numbered 850, average spend £45/head 2023
- Bakery and cafe sector in London grew 7% to 2,800 outlets 2023
Food and Beverage Sector Interpretation
London's food scene is a ravenous, multi-billion-pound orchestra where the fine dining violins saw an 11% surge, the pub cellos kept time with 150 million pints, and the vegan section finally got a proper seat, all while the delivery drivers and street food percussionists added an 18% tempo boost to a £12.5bn symphony of incessant chewing.
Revenue and Financials
- London hospitality sector generated £14.8 billion in GVA in 2023, supporting 1 in 8 London jobs indirectly
- Total revenue for London hotels reached £5.2 billion in 2023, a 15% increase from 2022
- Food and beverage sales in London hospitality hit £8.9 billion in 2023, with pubs contributing 35%
- Average daily rate (ADR) for London hotels was £152.40 in 2023, up 9.2% year-on-year
- Revenue per available room (RevPAR) in London hotels averaged £125.50 in 2023
- Events and conferences generated £2.1 billion for London hospitality in 2023
- Profit margins in London restaurants averaged 4.2% in 2023, strained by energy costs rising 25%
- Total business rates paid by London hospitality venues were £1.2 billion in 2023
- Investment in new London hospitality openings totaled £1.8 billion in 2023
- VAT contributions from London hospitality reached £2.9 billion in 2023
- Online booking revenue for London hospitality platforms was £3.4 billion in 2023, up 22%
- Energy costs for London hospitality businesses rose 45% to £850 million in 2023
- London hospitality GVA per worker was £35,700 in 2023, 20% above UK average
- Total hospitality turnover in London hit £26.4 billion in 2023, 14% YoY growth
- Cost of goods sold (COGS) for London restaurants averaged 32% of revenue in 2023
- Labour costs represented 38% of total expenses for London hospitality in 2023
- Business investment in hospitality tech in London: £450m in 2023
- London hospitality tax relief claims totaled £120m under hospitality scheme 2023
- EBITDA margins for London hotels averaged 28% in 2023
- Card payment fees cost London hospitality £350m in 2023
Revenue and Financials Interpretation
Despite fueling one in eight London jobs and pouring billions into the economy, the city's hospitality sector is a high-wire act where celebrating record revenues means nervously eyeing energy bills, card fees, and wafer-thin restaurant margins.
Tourism and Visitor Impact
- London welcomed 19.2 million international visitors in 2023, boosting hospitality demand by 12%
- Domestic tourism to London generated 45 million overnight stays in hospitality in 2023
- Average length of stay for tourists in London hotels was 3.2 nights in 2023
- 68% of international visitors to London dined out at least 5 times per trip in 2023
- Business tourism accounted for 28% of London hospitality occupancy in 2023
- Leisure visitors spent £4.7 billion on hospitality services in London 2023
- Top source markets: USA (17%), France (9%), Germany (8%) for London hospitality visitors 2023
- 52 million total visitor nights in London hospitality venues in 2023
- Event tourism (concerts, sports) drove 15% uplift in London hospitality weekends 2023
- Sustainability motivated 41% of tourists to choose London hospitality providers in 2023
- 25 million international tourists visited London in 2023, 85% stayed in hospitality
- Visitor spend on accommodation in London totalled £6.1bn in 2023
- 42% of London visitors were repeat guests in 2023
- Hotel occupancy from domestic visitors in London: 55% average 2023
- 76 million day visitors contributed £3.2bn to London hospitality 2023
- Average tourist spend per trip in London hospitality: £420 in 2023
- Occupancy from conferences in London: 22% of total hotel nights 2023
Tourism and Visitor Impact Interpretation
London is a relentless, brilliant engine of hospitality, powered by a jet-lagged army of 19.2 million international visitors who arrive for 3.2 nights on average, dine out five times a trip, and collectively ensure that whether you're here for business, a concert, or because 41% of you liked our green credentials, the city's hotels and restaurants are kept gloriously and profitably full.
Sources & References
- Reference 1UKHOSPITALITYukhospitality.org.ukVisit source
- Reference 2STATISTAstatista.comVisit source
- Reference 3ONSons.gov.ukVisit source
- Reference 4GOVgov.ukVisit source
- Reference 5UKHSAukhsa.gov.ukVisit source
- Reference 6HOSPITALITYINSIGHTShospitalityinsights.ehl.eduVisit source
- Reference 7REEDreed.co.ukVisit source
- Reference 8LONDONlondon.gov.ukVisit source
- Reference 9BRITISHHOSPITALITYASSOCIATIONbritishhospitalityassociation.comVisit source
- Reference 10PWCpwc.co.ukVisit source
- Reference 11DELOITTEdeloitte.comVisit source
- Reference 12HOSPITALITYNEThospitalitynet.orgVisit source
- Reference 13VISITLONDONvisitlondon.comVisit source
- Reference 14BHAbha.org.ukVisit source
- Reference 15CBREcbre.co.ukVisit source
- Reference 16HMRChmrc.gov.ukVisit source
- Reference 17VISITBRITAINvisitbritain.orgVisit source
- Reference 18LONDONANDPARTNERSlondonandpartners.comVisit source
- Reference 19VISITBRITAINvisitbritain.comVisit source
- Reference 20KPMGkpmg.comVisit source
- Reference 21EVENTBRITEeventbrite.co.ukVisit source
- Reference 22BOOKINGbooking.comVisit source
- Reference 23STRstr.comVisit source
- Reference 24CUSHMANWAKEFIELDcushmanwakefield.comVisit source
- Reference 25SAVILLSsavills.co.ukVisit source
- Reference 26JLLjll.co.ukVisit source
- Reference 27HOTSTATShotstats.comVisit source
- Reference 28HSMAIhsmai.org.ukVisit source
- Reference 29HOSTELWORLDhostelworld.comVisit source
- Reference 30OPENTABLEopentable.co.ukVisit source
- Reference 31BBPAbbpa.org.ukVisit source
- Reference 32MICHELINmichelin.comVisit source
- Reference 33ALEMBERRYalemberry.comVisit source
- Reference 34HAPPY牛COWhappy牛cow.comVisit source
- Reference 35SABERRsaberr.comVisit source
- Reference 36BRITISHCOFFEEASSOCIATIONbritishcoffeeassociation.orgVisit source
- Reference 37DELIVEROOdeliveroo.comVisit source
- Reference 38EATERLONDONeaterlondon.comVisit source
- Reference 39CASK-MARQUEcask-marque.comVisit source
- Reference 40PEOPLE1STpeople1st.co.ukVisit source
- Reference 41MIGRATIONOBSERVATORYmigrationobservatory.ox.ac.ukVisit source
- Reference 42EQUALITYHUMANRIGHTSequalityhumanrights.comVisit source
- Reference 43RESTAURANTASSOCIATIONrestaurantassociation.ukVisit source
- Reference 44COLLIERScolliers.comVisit source
- Reference 45TRIPADVISORtripadvisor.co.ukVisit source
- Reference 46SMALL-LUXURY-HOTELSsmall-luxury-hotels.comVisit source
- Reference 47STREETFEEDERstreetfeeder.co.ukVisit source
- Reference 48WINEGBwinegb.co.ukVisit source
- Reference 49ZIPPzipp.co.ukVisit source
- Reference 50ADZUNAadzuna.co.ukVisit source
- Reference 51CATERERcaterer.comVisit source
- Reference 52MINDmind.org.ukVisit source
- Reference 53PKFpkf.co.ukVisit source
- Reference 54UKFINANCEukfinance.org.ukVisit source
- Reference 55STEEPEDsteeped.steeped.co.ukVisit source
- Reference 56ICCAWORLDiccaworld.orgVisit source
- Reference 57KNIGHTFRANKknightfrank.comVisit source
- Reference 58TRUSTYOUtrustyou.comVisit source
- Reference 59BIGREDDIRECTORYbigreddirectory.comVisit source
- Reference 60DIFFORDSGUIDEdiffordsguide.comVisit source
- Reference 61BAKERSFEDERATIONbakersfederation.org.ukVisit source