London’s Luxury Hotels Have Finally Hit Their Price Ceiling
Call it fancy hotel deflation. A flurry of new five-star openings—and weaker demand—has made those $1,000-per-night rates feel unsustainable.
A junior suite at the Raffles London, with views over historic Whitehall.
Source: Raffles
Until recently, paying upwards of £1,000 ($1,300) for one night in a fancy hotel was starting to feel like an inevitability in London—even if you were happy to settle for a small, entry-level option. Thankfully for consumers, it’s now starting to feel like a stretch.
With more luxury openings driving up competition and economic uncertainty tamping down demand, London’s hotels are recalibrating their prices. The result is the first real deflation in luxury hospitality since the post-Covid “revenge travel” boom. Take the five-star Raffles at the OWO, which made headlines with its then-unprecedented £1,100 starting price when it opened in 2023. Search for a basic room now, and you might find one available for £880—20% less than its original going rate.