Strategy and Planning

Hotel Needs Assessment

August 2025

A hotel owner/operator commissioned Horwath HTL to conduct a hotel needs assessment to support a planning application for a new hotel in London’s Royal Docks. The area is undergoing major regeneration, with transport improvements, event-led demand, and new housing investment driving sustained visitor growth. The client required independent evidence to demonstrate the need for additional hotel capacity and to position the scheme as part of the area's wider regeneration agenda.

The needs assessment combined market intelligence with policy analysis to evidence both demand fundamentals and regeneration fit, with a focus on:

  • Market demand: Analysis of trading performance and visitor flows showed occupancy in Docklands consistently above 80%, with displacement into neighbouring boroughs and short-term rentals. This provided objective evidence of unmet demand and the market’s ability to absorb new supply.
  • Competitive positioning: Benchmarking of existing and pipeline supply demonstrated the dominance of midscale corporate hotels and the absence of lifestyle or boutique-led products. Comparisons with regeneration areas such as Olympia and Earls Court highlighted the opportunity for a differentiated product that could diversify the local accommodation mix.
  • Regeneration alignment: Review of the London Plan and local planning frameworks evidenced how hotel development at the Dock could complement housing-led growth, activate underutilised water space, and deliver wider economic and social benefits, including employment, training, and community engagement.

The hotel needs assessment provided an independent validation of the case for a new hotel to be developed in the Royal Docks and was included in the client’s planning application. By evidencing unmet demand, competitive gaps, and alignment with regeneration objectives, the report supported the planning submission and positioned the scheme as both commercially viable and socially beneficial within the area’s long-term development.

Hospitality
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