London’s hotel sector will grow by 3.9 percent in 2012, with the London Olympics and the Queen’s diamond jubilee bolstering tourist demand, according to UK estate agency Savills.
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A detailed view of the prototype design of the new golden Olympic torch during its unveiling at St Pancras Station on June 8, 2011 in London, England. 8,000 torchbearers will carry the Olympic Flame around the UK during the 70-day relay, which starts at Land's End in Cornwall on May 19, 2012.
“The Olympics will no doubt provide a boost to London performance this year,” Savills said in its spring report on UK hotel investment.
“The surprise pick-up in consumer confidence seen in January, which tends to pre-empt retail spend, may mean we see renewed domestic tourism demand bolstered by the feel-good factor associated with the Olympics and the Queen’s diamond jubilee,” Savills added.
In the United Kingdom outside of London, however, hotels will struggle, with Savills forecasting a 3.3 percent decline in growth in 2012. Moreover, Savills said the sector will not return to growth until after 2013.
The Queen’s diamond jubilee celebrations, marking 60 years of reign by Queen Elizabeth II, will take place from June 2 to June 5. Scheduled events include a river-side pageant, a formal carriage procession, a concert in Buckingham Palace, and a thanksgiving service in Saint Paul’s Cathedral.
The 2012 Summer Games will take place between July 27 and August 12.
For more on the impact of the Olympics and the diamond jubilee on London hotels, see here.
