The facts

The daytime hospitality economy is relatively strong in Hackney Central due to its status as the civic centre. One of the local sandwich shops has declared a turn over of £50,000 per week.

Leisure and recreation uses are also concentrated around Shoreditch, where opportunity exists due to greater connectivity, an existing thriving hospitality economy and an affluent customer base.

The dispersal of visitor accommodation away from Central London is happening towards the East with 3000 new rooms added in the East London-sub region since 2001 and an additional 2000 hotel rooms (net) required in London over the next 10 years. Hotels in London are among the most profitable in Europe and London is currently experiencing an exceptional boom in demand, with average hotel room occupancies running above 82%, the highest level for a decade .

Buoyed on by strong corporate travel demand and a healthy tourism market, London is essentially getting close to capacity. Furthermore, not only is London a strong demand market, it is also a very profitable one to operate in. Over the last two years, hoteliers have been able to drive through large tariff increases as well as sharply reducing discounts .

Looking further ahead, the fundamental supply and demand dynamics in the capital are expected to remain extremely good. Whilst supply additions will occur, these are expected to be relatively modest, and be more than compensated for by increases in demand. Natural occupancy levels are likely to remain close to 80%, with significantly higher levels during peak periods.