Expansion Plans at London Hotels – Part 1
Its no coincidence that some of the major hotel chains are expanding their operations in the capital. Hotels in London benefit from their unique position in the capital city of the UK, a worldwide centre for business, commerce, and finance, and a major tourist destination. This means the potential for growth and sustained year round and ongoing profitability, allied with the higher room rates in the city, give London hotels a much greater chance of success.
So what are the factors that combine to make hotels in London such an attractive proposition?
1. Conferences. London is the location for conferences staged by huge organisations and corporations, a lot of which take place annually bringing return business each year. Hotels within easy travelling distance of ExCel, the QEII Conference Centre, and Olympia fill rooms with conference delegates. The larger hotels all have conference rooms and facilities and host corporate meetings for companies drawn to the Capital.
2. The Royal Family, History and Palaces. The culture and history of London is something which just doesn’t exist anywhere else in the world. People converge on London from hundreds of miles to experience the history of the city and the pomp, colour, and ceremony of Royal occasions.
3. The London Olympics 2012. London will be filled with competitors and officials, broadcasting and media, and millions of spectators and Londoners all attending the games. It won’t be just the hotels nearest the venues that benefit. Will there be an empty hotel bed in London during the Olympic Games?
4. Sporting Events. Wimbledon Tennis Championships, Lords cricket, Premiership football, the University Boat Race. These big sporting events bring spectators and sponsors alike into the capital, all looking for somewhere to stay, and spending money in restaurants, bars, and on nights out.
5. Arts, Theatre, Music, Entertainment. Large Galleries like the Tate and Tate Modern, The National Portrait Gallery. London’s West End theatres centred around Theatreland with large scale productions not found outside the capital. A range of entertainment and nightlife bringing customers to hotels.
6. Holidays and Short Breaks. London is an attractive destination for weekend breaks or a holiday in the Capital. There are lots of things to see and do, lots of places to visit. Most people living in the UK at some time will have visited London and stayed in a hotel. That’s 60 million potential hotel customers.
7. A Range of Hotel Requirements. Because of the wide range of visitors and their differing requirements, the hotel offering needs to match the demand. There will be travellers on a budget looking for the cheapest option, and their will be high fliers from around the world booking the most luxurious hotel available. This creates a demand for hotel rooms in all sectors of the hospitality market.
8. Sightseeing and Attractions. Big Ben and the Houses of Parliament, the London Eye, Buckingham Palace, Trafalgar Square… the list is endless. London is blessed with a multitude of attractions which are famous around the world drawing business to London hotels. The hotels are in a unique position, they don’t need to market the area and give people a reason to visit… the attractions do that for them.
And there’s more… London offers lots of advantages for hoteliers looking to expand or set up operations in the City. Part 2 lists eight more influencing factors…