Story perspectives

London's Office-to-Hotel Conversions Surge Amid Market Recovery

1/27/2026

Summary

Story summary

Since 2019, London has sold 4 million square feet of office space to hotel developers, due to falling values and post-pandemic travel demand.
The trend accelerated in the last two years, with conversions in the City of London.
As office rents rise due to limited supply and strong demand for quality space, further conversions may diminish.
Developers are reconsidering strategies as the market shows recovery, potentially reversing the office-to-hotel trend.

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Story summary

Since 2019, London has sold 4 million square feet of office space to hotel developers, due to falling values and post-pandemic travel demand.
The trend accelerated in the last two years, with conversions in the City of London.
As office rents rise due to limited supply and strong demand for quality space, further conversions may diminish.
Developers are reconsidering strategies as the market shows recovery, potentially reversing the office-to-hotel trend.