Thinking of opening a hotel? Think of London.
Its no coincidence that major hotel chains are expanding their operations in the capital.
Hotels in London benefit from their unique position in the capital city of the UK, a worldwide centre for business, commerce, and finance, and a major tourist destination.
This means the potential for growth and sustained year round and ongoing profitability, allied with the higher room rates in the city, give London hotels a much greater chance of success.
So what are the factors that combine to make hotels in London such an attractive proposition? 1.
Exhibitions and Events.
The capital city of the UK is the venue for art and science exhibitions on a major worldwide scale.
People travelled long distances and queued for hours to see major exhibitions of Turner and Tutankhamun, for example.
These gained national media coverage and further promoted London as a destination.
2.
The Stock Exchange, Banking and Finance.
London hotels benefit from having employees from international companies and organisations arriving and needing somewhere to stay while in the city working or relocating.
The fact that London is a large financial services centre generates millions of pounds of revenue for the city and hotels.
3.
Corporate Hospitality.
Business conducted in the South West and London is responsible for most of the wealth produced by the whole of the UK.
Those businesses engage in corporate hospitality as part of their sales and marketing strategy.
They routinely use hotel facilities to meet with and entertain clients and prospects.
4.
Media, Filming and Broadcasting.
Ask anyone involved in TV and the media where they need to be based in the UK, and they will say London.
Whether its used for filming or as a temporary base for actors and production crew, or as a home for BBC staff, broadcasting requirements fills hotel rooms in certain parts of the city.
5.
Major International Airports.
As a main arrival and departure point to and from the UK, the big London airports are a location for busy hotels where the demand for hotel accommodation is guaranteed all year round, with no need to advertise to bring in business and fill rooms.
6.
Government and Public Sector.
MP's and civil servants, Government employees, and all the staff engaged in public sector services all have the need to use hotels from time to time, if not constantly.
Government departments book massive amounts of hotel accommodation in the execution of their work.
7.
International Tourism and Emigration.
While the influence of the UK as a world power may be diminishing, the influence of London as a capital city and the country as a place to emigrate to, is not.
Millions of people per year enter through London either to see the sights and holiday, or to move to the country permanently.
A London airport and hotel is the first experience of the Uk for thousands of people.
8.
Local Weddings, Parties, Birthday Celebrations.
People who live in London have events that they celebrate such as weddings, birthdays and the Christmas party season when they use hotels, generally the hotels closest to where they live.
This distributes hotel usage across the whole of London.
People use the hotel restaurant, bar, and for various food and beverage which all add welcome revenue for hotels.
A whole range of influencing factors and reasons why London is a unique place and a unique investment and business opportunity for hoteliers looking to expand in the city.
There may be lots of competition, but there's also lots of demand...