The UK hotel industry is booming because the decline of sterling against the dollar has made Britain a more affordable tourist destination, suggests Boodle Hatfield.
The private wealth law firm’s research concludes that luxury London hotels have fared well this year, despite decline in other industries and other areas of the hotel industry.
The total number of luxury UK hotels rose from 3,330 to 3,380 in 2018/19, while three-star hotels in the same period declined by a similar number.
Boodle Hatfield also found in previous research that 210 new London hotels are currently in development stages.
The decline of the pound, Boodle Hatfield says, has made it cheaper to visit the UK.
Tourists are predicted to spend a record £24.5bn in the UK in 2019, up from £22.9bn in 2018.
Adam Chamberlain, partner in the real estate team at Boodle Hatfield, comments: “London’s luxury hotel sector is still buoyant, and certainty over Brexit would be another positive for overseas investors in the market.”
“The luxury hotel market outside of London has showed some signs of cooling off, but the opportunity to invest in a landmark London hotel is still one that attracts wealthy individuals and families the world over.”
“UHNWs from the Gulf and Asia have long found luxury London hotels to be attractive assets, both as major trophy properties and income investments. That shows no signs of changing.”