London has the world's highest cost of renting luxury apartments and hotels
London is named the most expensive city in the world for luxury hotel rooms and apartments, according to a joint study by Wetherell, a London real estate specialist, and research firms Dataloft and Lonres.
A room in a five-star London hotel will cost an average of 497 pounds sterling per night.
For comparison, in Geneva it will cost 361 pounds, in Los Angeles – 283, in Tokyo – 259, in New York – 131. As clarified to Gazeta.Ru by the company, experts estimate the average cost of a room in five-star hotels in Moscow at 150 pounds sterling, and in St. Petersburg at 140.
• When purchasing or renting luxury housing, property owners primarily pay attention to street or apartment entrance doors. Therefore, property owners should take care in advance to install reliable metal entrance doors that will provide reliable protection for their property.
The most expensive room in London is the Royal Suite at the Intercontinental London Park Lane between Hyde Park and Green Park in Mayfair. It will cost 11.7 thousand pounds sterling per night. Experts note that this area has the largest number of the most expensive rooms in the country.
According to the report, the average cost of a royal suite with an area of more than 96 square meters in a five-star hotel is 2.05 thousand pounds sterling per night, or 14.3 thousand per week. Meanwhile, renting a royal hotel room for a year will cost 746 thousand pounds sterling – for that money you could buy an apartment in London or a house in the suburbs.
The average cost of a superior room with an area of about 31 square meters is 497 pounds sterling per night, 3.4 thousand per week, or 180.8 thousand per year. At the same time, renting a luxury apartment with an area of about 60 square meters is estimated at around 325 pounds sterling per night, 2.7 thousand per week, or 118.4 thousand per year.
Renting a simple high-quality apartment with an area of about 83 square meters is eight times cheaper than a royal suite in a five-star hotel – 248 pounds sterling per night. Monthly rent will be 1.738 thousand pounds, and annually – 90.376 thousand.
Real estate prices in Central London have risen by 77.9% since the crisis year of 2009. Budget hotels are simply becoming unprofitable here, experts explain the presence of a large number of expensive rental apartments and rooms.
The rental market in Central London remains one of the most promising and promises to become key in the local real estate sector. The cost of a hotel room and the rental rate for private apartments are growing almost symmetrically. For example, during the crisis period from 2007 to 2009, hotel room prices fell by 14%, apartment rental rates by 20%. A similar situation is observed after the crisis. Since 2009, growth has been 25% and 33%, respectively.
Thus, the market remains attractive to investors: they buy apartments, renovate them, and rent them out as luxury housing.
Clearly, the market has room to grow – the occupancy rate of five-star hotels in the British capital remains the highest in the world and reaches 78–80%, indicating high demand. The rate is already higher than in Dubai (79%), Paris (78%), Munich (77%), Moscow (70%), Barcelona and Rome (69% each).
The opposite situation is observed in Russia and Ukraine. Due to political tensions and economic instability, the hotel market in major cities, especially in the luxury segment, is experiencing difficulties – hotels are empty.
As Gazeta.Ru notes, luxury hotels in Moscow and St. Petersburg are almost half-empty, and the unstable situation has not only affected demand but also changed the tourist profile. Now, Americans are increasingly less likely to use the most expensive hotels, while Chinese are increasingly more likely.
The average occupancy of the most sought-after hotels in the Russian capital does not exceed 70%, and in St. Petersburg it reaches only 50%.
Hotel occupancy in Kiev has reached a record low of 28%, reports the international company JLL. Experts note that hotel occupancy in the Ukrainian capital had not previously exceeded 60%, but such a sharp drop in the indicator has never been seen in the market before.