How to win the London hotel boom

London’s hotel scene is thriving, with over 930 hotels and a rapidly growing number of luxury accommodations. By 2025, the city is expected to surpass Las Vegas in hotel room numbers, becoming the leading destination outside China. This expansion is driven by London’s status as a premier global destination, attracting over 21 million international visitors in 2023, according to VisitBritain.

Tourists are drawn to London’s unique blend of history and modernity, with over 70% highlighting its historic sites and cultural attractions, such as the British Museum and the Tower of London, as key reasons for their visit (VisitBritain). Despite economic fluctuations, the city’s rich heritage and vibrant arts scene continue to captivate travellers. To stand out in this competitive market, the hotel sector must move beyond traditional offerings and craft meaningful experiences that resonate with guests.

Post-pandemic, London’s visitor landscape has shifted significantly. The city saw a 15% increase in visitors from emerging markets like India and China in 2023 (VisitBritain), alongside a robust recovery in European tourism. Domestic travel has also risen, with an 8% increase in trips, reflecting a strong interest in local dining and events (Office for National Statistics). Demographics reveal a youthful surge in visitors aged 18-34 and a resurgence in family travel during peak seasons. Leisure remains the main attraction, but business travel is recovering with more international conferences. In today’s digital age, 80% of travellers use OTAs for bookings, with social media and search engines playing a crucial role in their decision-making (Trends Global Survey).

With visitor numbers approaching pre-pandemic levels, the challenge is clear: how can your property stand out? In this guide, we explore key strategies and insights to help you succeed in this evolving and competitive landscape.

Despite what OTAs would have us believe, they can be outsmarted. Achieving long-term success, however, requires a comprehensive, well-connected strategy. A winning approach must seamlessly integrate SEO, PR, PPC, and content creation.

To boost direct bookings, hotels need to understand the online travel landscape and the behaviours that drive decisions. In 2023, OTAs remained the top choice for 80% of travellers, closely followed by search engines, social media, and other platforms (Trends Global Survey). With travellers spending over five hours consuming online content and 75% influenced by social media, it’s clear that booking decisions are shaped by multiple digital touch points.

To boost profitability in the competitive London hotel market, hoteliers should focus on optimising their website for seamless direct bookings, incentivising guests with exclusive offers, and leveraging tools like Google Hotel Ads. Enhance guest experiences to encourage repeat visits, strategically manage OTAs to maintain visibility, and foster strong guest relationships. Additionally, employing dynamic pricing, can engage in effective email marketing, and utilise social media to build brand awareness. Collaborating with local businesses and launching targeted PR campaigns can further elevate your hotel’s presence and drive more direct traffic.

The rise of neighbourhood hotels and a preference for local experiences are key trends shaping the hospitality industry. Guests today are increasingly seeking authentic, immersive stays that connect them with the local culture. This shift is partly driven by a growing desire for experiential travel, where travellers prioritise unique and memorable experiences over traditional hotel stays.

Neighbourhood hotels, often smaller and independently operated, are ideally positioned to meet this growing demand. As global hotel groups expand their portfolios with diverse brands, delivering authentic guest experiences and crafting compelling brand narratives have become more important than ever. These efforts are key to avoiding homogenisation, encouraging differentiation, and giving guests a clear reason to book.

To achieve this, even large hotel groups should think small and operate with the mindset of an independent. Offering a personalised experience rooted in the local community—highlighting its culture, cuisine, and traditions—can create a deeper connection with guests. This approach reflects the increasing popularity of accommodations that emphasise authenticity and local engagement, which travellers now prioritise.