Over 3,000 hotel rooms are expected to have opened this year, according to CoStar data.
Although the luxury hotel landscape continued to evolve this year, it was not the most prominent class in new openings. Serviced apartments, upper midscale and budget properties made their mark as the year progressed, driving an increase in room supply.
Sir Devonshire Square, 4-5 Devonshire Square, EC2
The Sircle Collection Group opened its first property in London in September, after it was under construction for a couple of years. The 81-room Sir Devonshire Square in the City of London aims to bridge the ambience of the City and nearby Shoreditch, offering a bar and restaurant in addition to rooms. The group is also launching its private members’ club, The Cover, soon, which is expected to be a community-driven space featuring co-working areas, a gym, and a yoga studio, as well as offering activities for its members. Its location is likely to appeal to business trade, although a growing leisure segment in this part of London may also be drawn to the property, given its facilities and uniqueness.
The Chancery Rosewood, Grosvenor Square, W1
Rosewood Hotel Group opened its second property in London this year, with one of its most anticipated openings. The Chancery Rosewood started accepting reservations in September and features 144 suites, as well as five food and beverage outlets, a gym and a spa, including a 25-metre swimming pool. Construction began in 2020, and the hotel finally opened its doors to guests this year, shaking up the luxury landscape in London, with competitors keeping a close eye on it. Set in the former US embassy building, which has been transformed, the property is likely to be popular among affluent international travellers, most notably from the US and the Middle East, given its location. Its food and beverage outlets will also attract external visitors.
The July London Victoria, Vauxhall Bridge Rd, SW1
The July London Victoria was the relaunch of a brand, formerly known as City ID, which had had a couple of properties in Amsterdam. The London opening was a major move towards the rebrand and a concept that the group hopes to expand further afield. The property is a serviced apartment in Victoria, close to key public transport links, and offers 118 rooms, a restaurant, a deli, and a bar, as well as a gym and co-working space. While its location may appeal to leisure tourists, particularly the studio rooms, the larger apartments are likely to attract long-stay guests, most notably corporate clients, due to their convenient location and proximity to nearby amenities.
Zedwell Capsule Hotel Piccadilly Circus, Piccadilly Circus, W1
Criterion Capital’s hospitality division has been rapidly growing its portfolio of hotels through its Zedwell brand, capitalising on opportunities that other companies may not have tapped into. It has been active in acquiring buildings from other uses, such as offices and retail, and converting them. In these properties, most rooms, if not all, are windowless, with the model proving successful.
This year, the 965-windowless-room Zedwell Capsule Hotel Piccadilly Circus opened its doors, offering accommodation for approximately £30 a night, a bargain for central London. The property operates like a hostel, although the “cocoons” may be slightly more private as the shutters can be closed for privacy,. Facilities include shared bathrooms, private shower cabins, laundry amenities, secure luggage storage and dedicated female dormitories. The property is set to be popular with younger travellers on a budget, particularly those backpacking, with its central location being a major draw.
Hotel development is not expected to slow in 2026. Over 4,000 rooms are expected to enter the market in the year ahead, including several luxury properties. Ongoing delays continue to affect openings, particularly at the upper end of the market, with sites such as the Six Senses and the Waldorf Astoria Admiralty Arch now expected to open in 2026. Despite additional supply, the London market remains attractive for investors and developers, often ranking highly on investors’ agendas, as the capital continues to offer long-term opportunities for growth.