A newly converted boutique hotel in Leicester Square has been listed for £42 million, reflecting increased investor appetite for London’s luxury hospitality sector. The 2-5 Charing Cross Road property is set to open by June.
London’s high-end hotel market is expanding, with 757 new luxury rooms expected by the end of 2025—the largest annual increase since 2014. Despite rising costs, demand remains strong, with occupancy rates returning to pre-pandemic levels.
However, profitability faces pressure from rising wages and operational expenses. RSM UK warns of cost challenges ahead, but increased consumer spending could help sustain growth.
Global real estate firms Avison Young UK and JLL also market the freehold contract for 3-5 Charing Cross Road.
