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London hotel rooms cost more than a flat

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Planning a long term stay in London? Perhaps you should consider buying a flat rather than booking a hotel room.

A recent study by Real Estate Advisors Colliers International has revealed that the price of a single hotel room in London has reached an all time high - a whopping GBP500,000 per room. On the other hand a flat on average costs GBP417,234.

Colliers arrived at this price tag for London hotel rooms by reviewing the more than 2,500 two to five-star hotels. Transactions over the past two years amounted to over £1.5 billion in total.

The breakdown of average prices per category is as follows:

• Two to Three-star hotels - GBP263,000
• Four-star hotels - GBP540,000
• Five-star hotels - GBP738,000

Collier's Head of London Hotels Agency, Colin Hall, says the market is changing.

"It is now virtually impossible to buy a freehold Central London hotel operation for under £200,000 per bedroom, irrespective of condition, trade or location. Two years ago a similar hotel would have sold for £150,000 per room, which shows how quickly the market is moving," he said.

The property agency also released its 2015 global investor sentiment report, which shows that overseas investors are looking to include London commercial properties in their property development plan. After finishing 2014 on a high, the UK economy has returned to a long term growth trend of about 3 per cent annually. This comes after a six-year slump.

The report also suggests domestic and overseas investors will continue to favour Central London. Sales volumes should also rise this year, according to 85 per cent of those surveyed for the report.

Date Published: 18 Mar 2015
Category: General NewsUK

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