With seven hotels set to open in the Shoreditch area in the next two years, we are expecting to see a surge in retailer interest in the east London hotspot, boosting the area’s shopping offer on an international scale.

Increasingly, retailers are looking to align themselves with hotel brands and their clientele, and the impact this can have on an area’s reputation is clear. The opening of The Boundary Hotel and Shoreditch House were key drivers behind 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 Kit & Ace’s first UK store. Old Spitalfields Market has also seen the arrival of a number of new brands, such as Alexander McQueen, Belstaff and Jo Malone.

Shoreditch’s reputation as a creative hub has been a key draw for investors. Among the developments in the pipeline are luxury hotel brands Gansevoort and Nobu, who will shortly open their first London outposts in the area. The profile and proximity of these hotel brands and their clientele, along with the office and residential story, will be a key driver of the evolution of Shoreditch’s retail offer. With the added incentive of an almost 140 per cent increase in overnight guests annually in the area by the end of 2018, it is not difficult to see why new hotels are fast becoming catalysts for better retail offers.

As the new hotels in the Shoreditch area will no doubt bring an increasing number of international visitors to the area, so too has there been increasing interest from international brands. For example, both Cos and Anthroplogie have opened on Brushfield Street, with MAC and Bobbi Brown located in Old Spitalfields Market. And when it comes to rental growth, our research shows a rising demand for retail space is already feeding through, with an 11.8 per cent average annual increase in prime ZA rents in the Shoreditch area over the last two years.

The locations best placed to capitalise on this trend are likely to be those under single ownership, such as Old Spitalfields Market, as they are able to ‘curate’ the retail experience and destination experience.

The result is that a number of retailers now look to the Shoreditch area in the same way they look to the West End, helped by the arrival of destination/lifestyle hotels, Shoreditch’s future as a shopping destination looks secure.

Further information

Read more: New hotels in Shoreditch are Catalyst for Change in Retail Offer