The luxury London hotel market proved to be thriving in 2023 with increased room rates and occupancy at the end of the year.
The RSM Hotels Tracker, compiled and produced by Hotstats, reported average room rates for luxury UK hotels increasing 14% from £320.74 in November to £365.43 in December, demonstrating strong demand from guests in this sector.
London especially flourished, with gross operating profits per available room (GOP PAR) up from £173.00 to £208.34 between November and December, an increase of 20%.
Hotel occupancy in the capital also overtook pre-pandemic levels for the first time in December 2023. Occupancy rates improved from 78.3% in December 2019 to 80% in December 2023; and remained consistent with November last year at 80.6%.
“It’s fantastic to see the London market thriving across the board and particularly in the luxury sector. We’ve partnered with hotels in the capital for decades with several luxury projects including 100 Queen’s Gate Hotel London, Curio Collection by Hilton and our latest project St. Regis London, The Westbury.
This will be a luxury 5* hotel in Mayfair which will house 196 rooms including several luxury suites, a presidential suite and the high-end Polo Bar. We’re excited for the hotel to open and contribute to the city’s booming market.”
Peter Newman-Earp, Director at Morrison Design