London, the capital and the largest city in the United Kingdom remains one of the best destinations in the entire Europe. According to some quarters, it is a little piece of heaven with a little piece of something for everyone interested in great gastronomy, architecture, art, history, shopping, nightlife, and sightseeing, and more.
According to the British Hospitality Association (BHA), the hospitality industry currently supports more than 2.7 million people. The hotel industry represents a massive part of it, with over 45,000 establishments across the UK responsible for jobs in hotels and related services.
Total combined turnover for the hotel industry is estimated to exceed £40bn – a significant portion of the £127bn tourist economy. According to the same report, by 2025 this figure must have increased to £257bn, which is around 10% of the UK’s GDP. It will support 3.8 million jobs at that point, which is around 11% of the UK workforce.
Actual tourism spending in 2013 reached £113bn, with £24bn via international visitors and £89bn from domestic residents. Have it in mind that for every £1,000 generated directly from tourists into the industry, about £1,800 goes into the economy through the supply chain and consumer spending.
And despite threats of terrorism, flooding, and bad summer weather in recent years, which have undoubtedly affected the UK tourism industry, there has been solid growth, especially following some key international events. Starting a hotel business in London is a lucrative proposition but you will have to first consider the type of hotel you intend to run.
Is it going to be a small, cozy affair catering for couples eager for a romantic weekend break, or a larger, metropolitan establishment servicing the corporate market? Note that your target clientele would greatly influence the style and décor you use for your hotel.
A rustic setting will weigh against attracting corporate clients and will more likely appeal to people seeking quiet seclusion away from the city hubbub. Specific regulations pertaining to your business will vary according to your location and size, and the amenities you offer. With that in mind, here are the best places in London to start and run a hotel.
What is the Best Location for Hotel Business in London in 2022?
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Just as Shoreditch, Bethnal Green, and even the former industrial wilds of Stratford have transformed into hip areas, Covent Garden is another area in London to watch. Have it in mind that the neighborhood grants equal access to the Thames and the heart of the city—a rarity in London—as well as more than 20 theatres, including the Royal Opera House, within a ten-minute’s walk, making it an ideal home base for visitors.
Kensington and South Kensington
Note that these places are just South of Hyde Park and they’re excellent choices for families traveling to London. They also play host to London’s Museum Quarter, and they’re absolutely recommended for culture lovers who visit London annually. Some of the most well-known museums are the Victoria & Albert Museum and the Natural History Museum, just to name a few.
Currently, this thrilling neighborhood is booming with canal-side cafes and pubs and puts travelers minutes away from Central London (the closest Tube station is Warwick Avenue, one-stop from Paddington). In addition, where else can your lodgers take a boat to the zoo?
Shoreditch and Spitalfields
Both places are just so ideal for young people interested in art and culture. They’re also brimming with vibrant nightlife, and there will always be something to do here, regardless of when your customers are visiting, be it during the day or at night! In addition, it’s a great place for anyone eager to taste as many international cuisines as possible.
Note that this is a quiet, upscale neighborhood in the heart of Central London, with easy access to some of the city’s best-loved cultural institutions (the Victoria & Albert and Natural History museums among them) as well as South Kensington’s idyllic shop-filled streets. In addition, your hotel will be a short stroll from Hyde Park and Kensington Gardens.
One of the things people love about Greenwich is that, even though it’s not in the heart of London, you are never that far from all the important sights and attractions. Actually, anyone in Greenwich is around 20 minutes away by subway to the center, which is just great! If you own a hotel in this area, then you can expect your customers to go for a picnic, explore the Thames by boat, and enjoy coffee at one of the nice cafes around, and more.
Have it in mind that this area is home to Colin Firth and it is also a leafy neighborhood full of boutique shops, bakeries, and sidewalk bistros. The closest Tube stop, Turnham Green, is just three stations away from Earls Court, providing easy access to all the Central London sights.
Brixton & Peckham
If you want a good location that backpacker’s love, then Brixton & Peckham seems like the right place for your hotel business. If you intend to base yourself in a very vivid area where it seems there’s always something happening and expect to meet travelers steady, then these two areas (which are kind of close to each other, 50 minutes by foot) are just perfect!
If your intention is to leverage the various museums and also attract clients with different types of foods and cuisines, then situating your hotel in Victoria can be a great choice for you! One of the best things about Victoria’s neighborhood is that it is close to many important attractions such as the Big Ben and Buckingham Palace.
It’s also a great spot for people traveling by train or doing a Eurotrip, as Victoria Station is located here as well. Howbeit, you’ll also have plenty of tube stations in the area that can access three different subway lines.
Westminster remains one of the most unforgettable neighborhoods of London and the “political center” of the city, with a very rich history behind it! Westminster is also the place where you find Trafalgar Square, plenty of cafes, pubs, and beautiful architecture, so your business establishment will be far from bored in this neighborhood!
Choosing to start here means you’ll be steps away from the Houses of Parliament (also known as the Palace of Westminster), the Buckingham Palace, and, of course, Westminster Abbey.
London is a wonderland of renowned historical architecture, entertainment, theatre, and business. It also holds the reputation of being one of the world’s most multicultural cities, making it the world’s melting pot for businessmen and women from different cultures, religions, and ethnicities.
While fluctuating income and hard work can be a disincentive to setting up a hotel business in London, the potential financial reward and opportunity to meet people may ensure this is a bed you are happy to lie on.