The total supply of branded budget hotels in London has increased by ten fold, in the last fifteen years and has the capacity to grow even further, according to the latest issue of Visit London's Hotel Development Monitor.

Currently London has just over 13,000 budget rooms, which accounts for around 13% of total London hotel supply. In other parts of the UK, budget penetration rates are close to 20%, implying that London still has a 7% growth opportunity. This translates into a potential 8,000 rooms that could be developed before budget supply in London becomes mature.

The London Hotel Development Monitor figures also reveal that major operators account for the lion's share of this market. Although Premier Travel Inn holds a strong lead with a 29% share, others are gaining ground. Currently Travelodge is ranked second with 19% of market share, followed by InterContinental (through Express by Holiday Inn), Accor (through Etap, F1 and Ibis), Choice (Comfort Inn, Quality Hotel) and Cendant (Days Inn).

Visit London's Business Analyst Jamie Talmage said:

"Less than fifteen years ago if you wanted to stay in cheap accommodation it was either a B&B or a roadside service station. These days, good quality budget hotels are helping to underline a good value message in London. There appears to be an opportunity for even further growth in London's supply over the next few years."

Since 1989 Visit London has been compiling data about new hotel developments across London. This information details new hotel openings, as well as potential developments which are likely to be constructed.

The London Hotel Development Monitor is published during the first week of each month. It provides an overview of the likely hotel developments across London.

Further information at http://www.visitlondon.com