LONDON-As the 2012 Summer Olympics begins here Friday, the city has seen a massive build-up of hotel rooms, and of rental rates, with some questions how the increase will be sustained once the games end this fall.
The city has about 112,000 hospitality units, including hotel rooms, guesthouses and serviced apartments. In the past five months, London added about 2,000 rooms, and another 5,000 rooms are due to open by year end.
London has been the stalwart of the struggling Europe, with most commercial properties still going strong in the perceived core market, and hotels are no exception, so it’s hard to judge by how much the Olympics have improved upon demand. That there is increased demand is certain, says Jon Hubbard, CEO of Jones Lang LaSalle Hotels. With an estimated 300,000 additional foreign visitors for the games, there’s expected to be a 60% to 70% increase in average daily rate, compared to the same period in 2011, he tells GlobeSt.com.
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