London is the most-expensive city to sleep, according to a new report which examines the cost of renting a room and sleeping overnight or longer in cities around the world.
At £2,050 per night, the cost of renting a 5-star London hotel suite is now eight times more expensive than renting a furnished apartment (£248 per night). At £746,044, the cost of renting a hotel suite for a year in London is the price equivalent of buying a flat in London or a country house in suburban parts of London.
The report was published by real estate agency Wetherell who commissioned Dataloft, in association with Lonres, to undertake a detailed analysis of 5-star hotel rooms and suites; serviced apartments and rented flat rates across Mayfair.
At £11,700 per night for its top suite – Mayfair is London’s most expensive hotel destination. Rising property values in prime Central London (up 77.9 percent since 2009) are making budget hotels unviable making more 5-star hotels the only viable pipeline option.
Branded residences that provide hotel suites, serviced apartments and private sale flats are set to grow and become a major niche sector of the London property/hospitality market
Rented apartment rates have risen by more than 25 percent since 2009 creating the opportunity for investors to acquire a London apartment in need of refurbishment, create an ‘Armani style’ residence, rent out and effectively “enter the luxury hotel business”
Peter Wetherell, Chief Executive of Wetherell said: “Our new Wetherell Sleeping in London Report shows the astonishing strength of the recovery in values in the luxury hotel, serviced apartment and private rented markets in prime Central London since the global recession of 2007 to 2009.
“Since 2009 hotel and rented apartment rates have risen by more than 25 percent, and the cost of renting a room and sleeping in London is now at a record high.
“In the hospitality sector, Mayfair takes the crown as the most expensive place to sleep in London, and one of the most expensive in the world alongside New York and Monaco. “
He added that the most “game changing” recent development in the London luxury property and hospitality market, is the emergence of branded residences, which we believe is set to grow and become a major niche sector of the London luxury market.
“Branded residences are the ultimate synergy vehicle and are highly lucrative since they can tap into a range of revenue streams. This market is massively undersupplied in the capital at present with less than a dozen branded residences across inner London. The success of the existing projects also indicates that the format could also be strategically expanded into the 3- and 4-star hotel sectors, linked to lower priced serviced or private sale residences.”
Andrew Batt, International Group Editor of PropertyGuru Group,
wrote this story. To contact him about this or other stories email: andrew@propertyguru.com.sg
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