1 Hotel cover.indd - Nicola Cottam

Sector breakdown: Budget
Throughout 2006, the budget sector remained the key growth area for hotels, branded or otherwise, led by Premier
Travel Inn and Travelodge.
In London alone, Visit London’s 2006 London Accommodation Census, which looks at every accommodation
offering from hotels to hostels, reported a 60% rise in budget hotels since the previous survey, carried out in 2002.
The budget hotel sector now represents 16% of the entire London hotel market, and 13,650 budget hotel rooms
in the capital.
Commenting on the findings, James Bidwell, chief executive of Visit London, said: “These figures reflect the continued
growth of London as a leading destination, and in particular one which offers great value.
“The increase in budget accommodation will reinforce the accessibility of the city as London continues to increase
our number of hotel rooms in the lead up to the 2012 Olympic and Paralympic Games.”
Another key development was the marked eastward shift in hotel development. Whilst development in the east of
London had been underway prior to the success of the Olympic bid, early anecdotal evidence shows that London
2012 is already having an impact, with Newham, Tower Hamlets and Hackney growing at the fastest pace.
This is expected to continue over the next five years in the run up to the Olympics.
Stephen Irvine, development control manager at Tower Hamlets said: “There has been a significant increase in
planning applications for all sizes and types of hotels in Tower Hamlets during the last year.
“Not only are we preparing for the Olympic Games in 2012, but our location between the City and Canary Wharf
has created a demand for business accommodation and the regeneration of the East End has provided a fantastic
environment in which hotel operators can thrive and expand.”
London: Total Hotel Supply 2002-2006
Sector Number Change Rooms Change Beds Change
2002 (%) 2002 (%) 2002 (%)
5-Star 56 4 10150 9 20215 12
4-Star 173 18 36645 11 71437 10
3-Star 107 24 16521 17 32607 22
2-Star 21 -28 1150 -36 2311 -40
Budget 113 55 13650 61 28842 56
Others 94 422 5266 74 10434 66
Total 564 39 83382 20 165846 20
Note: excludes B&B and Guest Houses and all other forms of accommodation
Source: Visit London: London Accommodation Census 2006
Industry overview
March 2007 Hotel Report Guide to UK Hotels 2007 l © William Reed Publishing 8