The London boroughs of Kensington and Chelsea are said to be at maximum capacity when it comes to hotel development, with only 30 extra beds confirmed to be built in the borough until 2019.
The new findings, from Colliers International, highlighted that the two affluent London boroughs currently has 14,702 hotel rooms in 183 hotels and that only an extra 0.2 per cent hotel rooms are in the pipeline before 2019.
Colin Hall, head of London Hotels Agency at Colliers International explained that it’s become near impossible for hotel investors and developers to find the space to create new hotels in Kensington and Chelsea, with the residential market remaining consistently strong over the past few years.
“The grand period houses that make up much of the property stock in the area is difficult to convert,” he explained.
“Whilst central and west London have suffered from a lack of new supply, rising regeneration opportunities in the east have tempted hoteliers to seek out new areas in which to invest, particularly The City and Shoreditch.”
The City of London has confirmed plans for over 1,900 extra rooms, which would take the borough to a total of 8,476 hotel rooms available by 2019, whilst Tower Hamlets has over 1,700 extra rooms in the pipeline.
Hackney, which includes Shoreditch and Old Street within its borough, currently has only 2,200 active hotel rooms available, however it has the most active development pipeline as a percentage of current supply up until 2019 (50 per cent growth), almost double the development pipeline available in The City (29 per cent).
Hall continues: “The popularity increase in the east of London has not gone unnoticed by hotel investors. We’ve recently seen both Citizen M and The Courthouse Hotel open their doors in Shoreditch, and many other well known brands are looking to establish themselves here as well.”