The latest analysis by Heart of London Business Alliance’s Quarterly Real Estate Insights Report takes a deep dive into the Experience Economy, a sector rooted in the West End, identifying the opportunities it presents for economic growth in the area.

The report reveals that in London, experiences accounted for 34% of total consumer spending in the first half of 2024. Consumers, aged 18 to 34 specifically, are prioritising experiences over traditional purchases and spent 67% more than the national average between July and September this year.

London’s West End is known worldwide for its rich ecosystem of experiences – immersive theatre, exhibitions, competitive socialising, casinos, cinemas, hotels, restaurants, retail, and live experiences. The report reveals areas for further expansion of the sector in the Heart of London district, which is currently worth £10 billion to the UK economy. As a custodian, HOLBA seeks to ensure the Heart of London area retains its title as the cultural and entertainment capital of the UK and stimulate economic growth.

Opportunities to expand the Experience Economy in the area identified include:

• Developing and expanding the scope of the retail offer beyond instant transactions. 
• Offering short-term leases for experiential pop-ups to retailers, brands and institutions. 
• Investing in technology to create world-leading experiences. 
• Bridging the gap between the physical and virtual worlds with technology. 
• Collaborating across sectors to create innovative outputs. 
• Encouraging clustering of experience led occupiers to create an agglomeration of complementary typologies. 
• Supporting the development and implementation of innovative new formats. 

This entertainment offering is underpinned by high footfall numbers in the Heart of London area and the strength of the wider economy. Between July and September this year, the area attracted 22.6 million visitors, of which 14.4 million were domestic and 8.2 million were international. Compared to the same period last year (Q2 2023), the area experienced a 6.7% increase in footfall.

Additionally, HOLBA’s analysis also shows that as of the second quarter of the year, between July and September 2024, commercial occupancy rates in the Heart of London area were at 97.3%, while restaurants, bars, and other hospitality venues had a 100% occupancy rate.

Hotels also continue to recover strongly from the pandemic, with a 4.5% increase in revenue in Q2 2024-25. There is set to be significant growth in the coming years, with at least 15 hotels in the pipeline to be open between 2023 and 2025, adding over 2,500 rooms across London.