Hotels at major London airports are developing faster and are more profitable than those in the rest of the capital, a new report has found.

VisitLondon’s latest London Hotel Development Monitor highlights the sector’s accelerated development, which is being driven by occupancy levels well above industry averages.

The success of airport hotels is due to a guaranteed customer base and frequent 100% occupancy levels, said VisitLondon.

Heathrow and Gatwick – which represent two of the most profitable UK hotel locations - are now becoming business centres in their own right and attracting significant levels of conference and meeting activity.

The report also found Stansted and Luton are profitable locations for hotel operators with Stansted in particular having significant growth potential as it currently handles twice the number of passengers to hotel rooms in the area.

Visit London business analyst, Jamie Talmage, said: “With London’s five major airports expecting to see passenger numbers jump to 191 million by 2015, up 43% on 2006 numbers, the interest in airports by operators and developers is certainly warranted.”

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By Emily Manson

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