As TRI Hospitality Consulting reported, London’s hotel market is going from “strength to strength”, currently outperforming most other European cities including failed 2012 Olympic Games bid city Paris, Madrid, Rome, Berlin and Amsterdam.

In line with wider economic recovery, the UK is now entering a new hotel cycle with demand for upscale hotels increasing and room rates rising. According to the world class corporate travel services company, Hogg Robinson Group, London room rates increased by 3% in 2010 and Deloitte predicts a 2.2% increase in revPAR (revenue per available room) in 2011.

With over 500,000 visitors expected at the 2012 Games demand for hotel accommodation in the Capital will be massive. Current stocks are unable to meet this demand and therefore leading global hotel brands such as Intercontinental Hotels Group (IHG) which owns 5% of the world’s hotel rooms, are actively expanding their London portfolios.

Capitalising on the demand for luxury accommodation in London (PwC predicts a 27% increase in luxury hotel rooms between now and the Olympic Games), work has already commenced on IHG’s flagship Docklands hotel – the 4* Holiday Inn West India Dock Road.

As an official Olympic partner, Holiday Inn West India Dock Road will be a feeder hotel for the much anticipated games affording a prime strategic location adjacent to Westferry DLR station and only 15 minutes to the Olympic Park at Stratford.

Steven Worboys, MD of Experience International based in Central London who are marketing the hotel, comments,

“IHG, owners of the Holiday Inn brand, are confident of high occupancy levels at West India Dock Road forecasting 70% occupancy in year 1 rising to 80% from year 2 onwards which will in turn deliver double-digit yields of 10.7% in year 5 and thereafter. Construction has already commenced at the Docklands site with completion due Q1 2012, months before the start of the Games.”

Hotel rooms in phase 1 sold within weeks of launch to buyers from all over the world including the Far East, and now in response to demand a limited number of hotel suites have now been released including some on the sought-after upper floors.

The 4* luxury rooms will include high specification en-suite bathrooms, bespoke Holiday Inn bed and bed linen, built in MP3 docking point, LCD TV, WiFi and flexible zoned areas to work and relax in.

Fully managed and operated by Holiday Inn, executive rooms are available at 19% below official RICS valuation at £189,000 however with non-status finance available a deposit (secured by insurance bond) of just £65,000 is required.

For more information about investing in London’s booming hotel market or indeed the limited number of new luxury hotel suites at Holiday Inn West India Dock Road contact the experts at Experience International on +44 (0) 207 321 5858 or visit www.experience-international.com.

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Partly the rise has been fuelled by property investors believing that the housing market is nearing bottoming out and therefore property bargains can be had. There is also a lack of good quality property on the market so when good properties have a For Sale sign on them, they are being snapped up quickly at close to the asking price. Central London is also perceived as a good area to buy in as it is relatively low risk compared to other major city properties as it is home to so much business and there will always be a good supply of renters who are professionals.

However experts are keen to warn that this doesn’t mean the housing market is about to start rocketing again. Mortgages are still thin on the ground and many are struggling to find lenders willing to lend them the money to fund property purchases. Many of the current property buyers in central London are property investors and cash buyers, both of whom make up just a tiny proportion of property buyers as a whole. The housing market will not start to free up until mortgage lending is freed up to the masses.

However the increase in property prices in the central London area should inject some confidence into the property market and this may mean that the housing market in the UK may start to slowly start its recovery over the next few months.

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