New Shoreditch hotels will be catalyst for change in retail offer
With seven new hotels in the pipeline for Londons Shoreditch, including Gansevoort, Nobu and CitizenM, it is predicted that retailers will be drawn to the area due to its potential growth as an international destination.
According to global property firm Savills, the new hotels will bring a 137% increase in ‘overnight guests’ in the Shoreditch area, going from 130,000 to 308,000 by the end of 2018.
Marie Hickey, director of Savills research, said: “The attraction of the Shoreditch area was originally driven by its reputation as a creative hub, in turn boosting its visitor appeal. Hotel brands have latched onto this appeal. What is really interesting now is that we’re seeing international ‘luxury’ hotel brands such as Nobu and Gansevoort open their first London outposts in Shoreditch and its the profile of these brands and their clientele, along with the office and residential story, that will be a key driver of the evolution of Shoreditch’s retail offer.”
The opening of The Boundary Hotel and Shoreditch House, the firm reports, was a key catalyst on the rising profile of Redchurch Street as a fashion destination with a number of brands subsequently opening including J Crew, Versace’s Versus brand and The Modern Society Boutique. Old Spitalfields Market has also seen the arrival of a number of new brands including Alexander McQueen, Belstaff and Jo Malone.
Hickey added: “The locations best placed to capitalise from this are likely to be those locations under single ownership, such as Old Spitalfields Market, as they are able to ‘curate’ the retail experience providing tenants some comfort in terms of alignment of neighbouring brands as well as coherently marketing it as a retail destination.”
Savills said its research shows that rising demand for retail space is already feeding through to rental growth with an 11.8% average annual increase in prime ZA rents in the Shoreditch area over the last two years.
Oliver Green, director of retail at Savills, said: “A number of retailers are increasingly looking to the Shoreditch area in the same way they would look to the West End as they wish to gain exposure to London’s international visitors. We expect this to continue as schemes such as Old Spitalfields Market and Redchurch Street firmly establish themselves as shopping destinations.”
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