Demand for hotels could soar following Heathrow or Gatwick expansion

Demand for hotel rooms could soar by 71% and 42% respectively if the planned expansion of either Gatwick or Heathrow airports was to go ahead. 

This is according to a new report from estate agents Savills, which also reported increasing demand caused by rising passenger numbers at Gatwick and Heathrow (up 7.5% and 1.4% respectively in 2014, compared with the previous year).

The Airports Commission is currently researching three potential options to expand, including a second runway at Gatwick requiring an additional 4,800 rooms, a third runway at Heathrow or an extension to its north runway – both requiring an additional 4,000 rooms.

Savills said that mid-market branded operators such as Hilton and Holiday Inn have “historically” colonised the market, but new ‘pod’ hotel concepts such as Yotel and budget boutique operators such as Bloc are beginning to enter the scene.

Marie Hickey, commercial research director at Savills, said: “The historical link between airport passenger numbers and hotel demand means that, regardless of which option the Airports Commission chooses, it will generate demand for new supply. In turn, this will introduce new product types and brands providing greater convenience for travellers.”