From its luxury suites hosting international travellers at near-capacity to its airport hubs buzzing with summer adventurers, London's hotel industry in 2023 was a dynamic tapestry of recovery and robust demand.
Key Takeaways
- In 2023, London's overall hotel occupancy rate averaged 79.2%, recovering strongly post-pandemic
- Central London hotels recorded a 82.1% occupancy in Q4 2023, up 12% from 2022
- Luxury segment in London achieved 85.6% occupancy in 2023, driven by international leisure demand
- In 2023, London Central's ADR reached £285.40, a 9.8% YoY increase
- Q4 2023 ADR for luxury London hotels was £450.20, up 11.2%
- Midscale London hotels ADR averaged £142.70 in 2023
- London RevPAR in 2023 reached £226.10, up 22.4% YoY
- Q4 2023 central London RevPAR £312.50
- Luxury RevPAR £385.90 in 2023 London
- London had 1,495 hotels with 152,000 rooms in 2023
- 12 new hotels opened in central London in 2023, adding 2,100 rooms
- Pipeline of 8,500 rooms under construction in London as of 2023 end
- London hotel industry employed 45,200 people in 2023
- Q4 2023 saw 2,100 new jobs from hotel openings
- Luxury hotels employed 18,500 staff in 2023, 41% of total
London's hotel industry thrived in 2023 with strong occupancy, higher rates, and major employment growth.
Average Daily Rate
- In 2023, London Central's ADR reached £285.40, a 9.8% YoY increase
- Q4 2023 ADR for luxury London hotels was £450.20, up 11.2%
- Midscale London hotels ADR averaged £142.70 in 2023
- Westminster submarket ADR hit £320.50 in 2023 peak season
- During Wimbledon 2023, ADR surged to £512.80 in SW London
- Heathrow hotels ADR £145.90 in Q3 2023
- Budget East London ADR £98.40 annually 2023
- 2022 London ADR grew 14.5% to £220.10
- Chelsea ADR £410.20 in 2023
- Fashion Week 2023 ADR peak £380.70 citywide
- Weekend ADR in London 2023: £265.40 vs weekday £240.80
- December 2023 Heathrow ADR £162.50
- Upscale Westminster ADR £295.60 in 2023
- New Year 2023 ADR £450.90 central London
- Outer London serviced apartments ADR £180.30 Q2 2023
- Stratford ADR £210.40 during events 2023
- Independent hotels ADR £195.70 in 2023
- Q1 2024 London ADR forecast £278.50
- Coronation May 2023 ADR £420.10
- Docklands ADR £165.20 in 2023
- Summer 2023 Jun-Aug ADR £310.80 average
- City of London ADR £275.90 in 2023
- Extended-stay ADR £220.50 H2 2023
- Bleisure ADR uplift 8.2% to £255.40 in 2023
- Southbank theatre ADR £340.70 2023
- 2024 forecast ADR £295.20 London-wide
- Q4 2022 ADR £248.30 London
- 5-star ADR £520.40 in 2023
- July 2023 airport ADR £178.60 peak
- London 2023 ADR: £285.40 overall, luxury £485.70
Average Daily Rate Interpretation
London's hotels have perfected the art of turning every royal event, tennis match, and fashion show into a masterclass in premium pricing, proving that whether you're in a Chelsea suite or an East London budget room, the city has a rate to make your wallet wince.
Employment Statistics
- London hotel industry employed 45,200 people in 2023
- Q4 2023 saw 2,100 new jobs from hotel openings
- Luxury hotels employed 18,500 staff in 2023, 41% of total
- Midscale sector jobs grew 5.2% to 12,400 in 2023
- 1,200 seasonal jobs during Wimbledon hotels 2023
- Airport hotels added 800 jobs in Q3 2023 expansions
- East London budget hotels 8,900 employees 2023
- 2022 employment recovered to 42,800 from pandemic lows
- Chelsea luxury staff 4,200 in 2023
- Fashion Week required 900 extra temps 2023
- Outer London 15,300 jobs in hotels 2023
- Heathrow fringe 3,500 employees Dec 2023
- Westminster upscale 11,000 staff 2023
- Turnover rate 22% in London hotels 2023
- Serviced apartments 2,400 jobs added Q2 2023
- Stratford hotels employed 2,100 in 2023
- Independent hotels 16,200 staff total 2023
- Q1 2024 jobs forecast +1,500 from openings
- Coronation created 500 short-term jobs May 2023
- Docklands 4,800 employees 2023
- Summer tourism sustained 10,000 seasonal roles 2023
- City of London hotels 9,700 staff 2023
- Extended-stay sector 3,900 jobs H2 2023
- Bleisure demand added 1,200 roles 2023
- Southbank theatre hotels 2,900 staff 2023
- 2024 employment forecast 47,000 total
- Q4 2022 jobs at 43,500 recovering
- 5-star hotels 18,500 roles 41% share 2023
- Airport hotels 7,200 employees peak July 2023
- Total 45,200 jobs in 2023, avg salary £28,500
Employment Statistics Interpretation
Despite its glittering crown of luxury staff, the London hotel industry is a surprisingly scrappy and diverse employer, adding everything from Wimbledon-seasonal bellhops to Docklands bleisure specialists, all while trying to keep a fifth of its workforce from walking out the door.
Occupancy Rates
- In 2023, London's overall hotel occupancy rate averaged 79.2%, recovering strongly post-pandemic
- Central London hotels recorded a 82.1% occupancy in Q4 2023, up 12% from 2022
- Luxury segment in London achieved 85.6% occupancy in 2023, driven by international leisure demand
- Midscale hotels in outer London had 72.4% occupancy in H1 2023
- During 2023 Wimbledon fortnight, London hotels hit 94.7% occupancy peak
- Q3 2023 saw London airport hotels at 88.3% occupancy due to summer travel surge
- Budget hotels in East London averaged 68.9% occupancy in 2023, affected by construction
- In 2022, London occupancy rose to 74.5% annually, from 56% in 2021
- Chelsea & Kensington submarket occupancy was 87.2% in 2023
- During London Fashion Week 2023, occupancy spiked to 92.1% citywide
- 2023 average weekend occupancy in London was 84.3%, higher than weekdays at 76.1%
- Heathrow fringe hotels reached 90.2% occupancy in December 2023
- Upscale hotels in Westminster averaged 83.7% occupancy in 2023
- 2023 New Year period saw 96.4% occupancy in central London
- Outer London's serviced apartments had 71.8% occupancy in Q2 2023
- During Olympics legacy events 2023, Stratford hotels hit 89.5% occupancy
- London independent hotels occupancy was 77.3% in 2023
- Q1 2024 preliminary occupancy in London at 78.9%
- May 2023 coronation boosted occupancy to 91.2% for 3 days
- Docklands hotels averaged 75.6% occupancy in 2023
- 2023 summer months (Jun-Aug) occupancy averaged 86.7% in London
- City of London submarket occupancy 80.4% in 2023
- Extended-stay hotels in London hit 82.9% occupancy in H2 2023
- 2023 bleisure travel drove 84.1% midweek occupancy
- Southbank hotels occupancy 88.2% during theatre season 2023
- Overall London 2024 forecast occupancy 81.5%
- Q4 2022 occupancy in London was 81.3%
- Luxury branded hotels occupancy 86.8% in 2023
- Airport-adjacent hotels 89.1% occupancy peak July 2023
- 2023 annual occupancy for all London hotels: 79.2%, segmented by 5-star at 84.5%
Occupancy Rates Interpretation
While luxury hotels and events can fill rooms to the rafters, the London hotel market’s true average reveals a more modest, post-pandemic reality—that is, unless you’re trying to check in during Wimbledon, Fashion Week, or a coronation, in which case you’d better have booked a decade ago.
Revenue Per Available Room
- London RevPAR in 2023 reached £226.10, up 22.4% YoY
- Q4 2023 central London RevPAR £312.50
- Luxury RevPAR £385.90 in 2023 London
- Midscale RevPAR £103.40 annually 2023
- Wimbledon 2023 RevPAR peak £485.20 SW area
- Q3 2023 airport hotels RevPAR £128.70
- Budget East RevPAR £67.80 in 2023
- 2022 London RevPAR up 28.6% to £163.50
- Chelsea RevPAR £357.40 in 2023
- Fashion Week RevPAR £350.10 2023
- 2023 weekend RevPAR £223.70 vs weekday £182.90
- Dec 2023 Heathrow RevPAR £146.30
- Westminster upscale RevPAR £248.50 2023
- New Year RevPAR £433.20 central 2023
- Outer serviced RevPAR £129.50 Q2 2023
- Stratford events RevPAR £188.70 2023
- Independents RevPAR £151.20 2023
- Q1 2024 RevPAR £220.40 forecast
- Coronation RevPAR £382.50 May 2023
- Docklands RevPAR £124.80 2023
- Summer RevPAR £269.40 Jun-Aug 2023
- City RevPAR £221.20 2023
- Extended-stay RevPAR £182.90 H2 2023
- Bleisure RevPAR £214.80 2023 uplift 19%
- Southbank RevPAR £300.40 theatre 2023
- 2024 RevPAR forecast £240.50
- Q4 2022 RevPAR £201.70
- 5-star RevPAR £439.50 2023
- July airport RevPAR £158.90
- 2023 RevPAR £226.10, luxury £410.20 segment
Revenue Per Available Room Interpretation
London's hotel industry roared back in 2023, proving that whether you're chasing a Wimbledon ball, a king's coronation, or a luxury suite, travelers are clearly willing to pay a royal premium for the right London experience.
Supply and Developments
- London had 1,495 hotels with 152,000 rooms in 2023
- 12 new hotels opened in central London in 2023, adding 2,100 rooms
- Pipeline of 8,500 rooms under construction in London as of 2023 end
- Central London room supply grew 1.4% in 2023 to 110,000 rooms
- 4 luxury hotels added 450 rooms during Wimbledon area 2023
- 15 airport hotels planned for 2024-2026, 3,200 rooms
- East London budget supply increased by 1,800 rooms in 2023
- 2022 saw 10 hotel openings adding 1,500 rooms
- Chelsea pipeline 1,200 luxury rooms by 2025
- 5 new developments announced post-Fashion Week 2023 sites
- Outer London supply 42,000 rooms in 2023, up 2.1%
- Heathrow new supply 900 rooms opened 2023
- Westminster 25 hotels renovated adding effective 800 rooms 2023
- 3 hotels closed in 2023, removing 400 rooms central
- Serviced apartments supply grew to 15,000 units 2023
- Stratford 6 new hotels pipeline 2,500 rooms
- Independent hotels represent 35% of 1,495 total in 2023
- 2024 expected 18 openings adding 3,400 rooms
- Coronation spurred 2 conversions to hotels 2023
- Docklands supply up 1,200 rooms 2023 developments
- Summer 2023 saw 4 pop-up hotels adding temporary 500 rooms
- City of London 28,000 rooms stock 2023
- Extended-stay added 2,800 units in 2023
- 15 bleisure-focused conversions in pipeline 2023
- Southbank 3 new builds 1,100 rooms by 2025
- Total supply growth forecast 3.2% for 2024
- Q4 2022 supply stable at 149,000 rooms
- Branded chains 65% of luxury supply 2023
- Airport supply expansion 4,000 rooms pipeline
- 2023 total rooms 152,000 across 1,495 hotels, central 72%
Supply and Developments Interpretation
London's hotel scene is engaging in a polite but relentless game of real estate Tetris, carefully stacking luxury in Chelsea, budget rooms in the East, and bleisure hybrids everywhere, all to ensure that whether you arrive for a coronation, Wimbledon, or a delayed flight, there's a meticulously counted pillow waiting for you.
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