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Savoy hotel 'could flood luxury market'

Interesting article on Bloomberg.com today about London's iconic Savoy hotel. The place has been closed since late 2007 for a £100 million renovation.

savoy.jpgAfter the opening date slipping further and further back - something we're no stranger to these days - it looks like the hotel will reopen in April 2010.

I'm dying to see the results of the work. However, as the article points out, other luxury hotels might not welcome the relaunch with open arms.

The luxury sector has been hardest hit in London, with bankers and corporate guests having been stripped of their expense accounts.

An extra 268 rooms is probably not what the sector needs. "Luxury properties are going to feel it when the Savoy opens," said STR Global analyst Konstanze Auernheimer. "In these market conditions, when it is already tough for everyone, it has been a blessing for rivals to have it out of action."  

 

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