New hotel development in London is continuing apace despite challenges in the construction industry. Under-construction rooms due to open in 2024 amount to approximately 6,500, according to CoStar data.
Some highly anticipated luxury properties will be entering the market, including various new brands looking to expand their footprint. CoStar looks at which properties will be shaking up London’s hotel market in the next 12 months.
2024 Hotel Openings
After years of planning and development, the art’otel London Hoxton is expected to finally open its doors in the first quarter of 2024. The 26-storey art-inspired hotel will be the brand’s second in London and will be its flagship offering 350 rooms alongside creative studios, workshops, an arts hub, spa and cinema. The hotel is on the corner of Old Street with Great Eastern Street in Shoreditch, and it is likely to benefit from a good mix of leisure and business demand as the area has become a hub for the technology sector and creative industries, while visitors for leisure purposes have also been attracted to the area given its trendy bars and restaurant.
Mandarin Oriental is expected to open its second property in London during the first quarter of 2024. The project was originally slated for opening in 2023 but delays and construction in neighbouring properties have pushed it further out. The hotel will be on Hanover Square following the redevelopment of the former office building to offer a 50-room hotel and 77 residences which have all been sold. Other features will include two restaurants, a lounge and rooftop bar as well as an urban spa, with facilities and services available to the branded residences too. Being situated in London’s main shopping district, including high-end retail destinations such as New Bond Street, the property is set to attract affluent leisure travellers and senior executives on business.
The Park Hyatt London River Thames and Residences is expected to open later this year, as Hyatt continues its strategic expansion into the luxury space. The property will be located in a non-traditional luxury destination, south of the river Thames, in the newly-developed Nine Elms area. Like the Mandarin Oriental property and most new luxury developments across London, the proposed scheme will feature branded residences (103 units) in addition to approximately 200 rooms, food and beverage amenities and wellness facilities, including a gym and a swimming pool. It is likely to benefit from a mix of high-end leisure and business guests being near the US embassy and with good connectivity to other parts of London through the underground network, including the recently opened Nine Elms underground station.
Making its debut in the UK, the Hyde London City is expected to open its doors this quarter following the redevelopment of a former office building on 15 Old Bailey. Originally built as a hotel in 1874, the property is undergoing a circa £34 million transformation to convert the building into a 111-room lifestyle hotel, including a restaurant, bar and a fitness centre. The brand is part of one of Ennismore’s lifestyle brands with the food and beverage offering expected to be appealing to London residents while the hotel is likely to attract a mix of leisure and business travellers, given its location in The City of London close to St Paul’s Cathedral and various corporate headquarters.
Adding to London’s evolving luxury hotel landscape, the Maybourne Hotel Group is expected to open The Emory hotel later this year, its fourth hotel in the capital. An exclusive destination accessible via a private entrance on Old Barrack Yard in Knightsbridge, the hotel will be an all-suite hotel offering 60 suites, including a penthouse, and a rooftop exclusive to hotel guests only, offering 360-degree views of London. Other amenities will include New York City’s abc kitchen concept as well as an underground wellness facility, including a spa and swimming pool. The property will attract affluent visitors, potentially having some crossover from other properties such as The Connaught and The Berkeley, while the food and beverage outlets may appeal to outside guests too.
The former Whiteleys shopping centre is currently a significant redevelopment to be transformed into the 110-room hotel and 14 branded residences. Originally set to open in 2023, construction has been delayed, so it is opening later this year, the brand’s first in the UK. It will have a diverse food and beverage offer and will aim to attract the local community providing coworking spaces, while the Six Senses Spa will also be a key feature of the property, in line with the brand’s ethos and standards. The hotel will be largely appealing to high-end leisure, given its positioning, location, and facilities, but is likely to draw business guests too, given the coworking and meeting spaces available, making use of all the common areas to drive revenue.
London remains a sought-after destination for hotel operators, driving new supply in the medium term. A major slowdown is not expected in the next two years with most new openings due in 2024, given delays experienced across most projects’ timelines. Challenges in the construction industry, development financing and sustainability objectives across local authorities is likely to continue driving conversion activity for new developments in the medium term.