Cost of renting a room in London hits a record high across the Hotel, Serviced Apartment and Flat-Rental Markets.
The cost of renting a room and sleeping overnight or longer in Prime Central London (PLC) has hit new record highs across the hotel, serviced apartment and flat-rental markets:
- 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 the home counties
- At £11,700 per night for its top suite – Mayfair is London’s most expensive hotel destination
- The hotel suite and rented apartment markets are becoming increasingly similar
- Rising property values in PCL (up 77.9% 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 over 25% 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”
These are some of the findings of the new ‘Sleeping in London’ report on the hotel, serviced apartment and private flat-rental markets undertaken by leading West End and Mayfair estate agent Wetherell.
To deliver ‘Sleeping in London’, Wetherell commissioned Dataloft, in association with Lonres, to undertake a detailed analysis of 5 star hotel room/suite; serviced apartment and rented flat rates across Mayfair. Comparisons were then drawn between the Mayfair market and other districts such as Knightsbridge, St James’s and Whitehall/Strand using findings from other research material.
The report has also made observations about hotel and branded residences development across PCL. The report has drawn on data from Lonres, HVS, Statista and other hospitality/property industry information.
You can read the full report at Wetherell