Legal Consideration For Hotels: Planning (Video)

From conversions to community impact - how is planning law shaping hotel development?

With hotel conversions up 26% year-on-year, planning has become a critical factor in UK hotel development. Philip Baker, Partner and Co-lead of Hotels and Vicky Fowler, Head of Planning, unpack the legal challenges and opportunities driving this trend.

They explore why permitted development rights rarely apply to hotels, and how local and national policy (especially the London Plan) are influencing city centre regeneration. From heritage and transport to sustainability and neighbour impact, Philip and Vicky break down the planning frameworks investors need to navigate.

Gain practical insights into how hotels can drive city centre regeneration, foster inclusive environments, and deliver meaningful community benefits.

Transcript

Philip Baker: Let's jump straight into it, shall we Vicky? Have you noticed a rise in the number of hotel conversions coming through in your work?

Vicky Fowler: We've definitely seen an increase in conversions, which isn't surprising when you think about that pent up demand in hotel beds. And then you've got that coupled with underused office assets, particularly in prime locations like central London. I was reading the UK continues to attract visitors from around the globe.

So London in 2023, 20.3 international visitors, and that's London alone spending 16.7 billion. And then we had 15.1 domestic visitors to London. So just in terms of that need and that demand for hotels there's no slowing down. I think what's really interesting in the city is those landmark conversions. So we saw back in 2023, the old war office, opened its doors as a luxury Raffles hotel.

So for those that have the right assets, there's huge potential value, you know, particularly in those prime locations with good transport access.

Philip: Yeah, absolutely. And what about the new builds?

Vicky: We are seeing new builds. Definitely demolition and new build developments. Within the city and more widely, quite often part of mixed-use schemes, or tower blocks with residential. So there was one in Kensington Chelsea, that was actually recovered by the mayor. Hotels come to the market fairly infrequently.

So actually, you know, a conversion or a new build, at the end of the day is adding to those operators portfolios. So, yeah, they're very popular. And then you've got the whole, city centre, local authorities wanting to boost that footfall.

In these city centres where people aren't going into the office. So attracting more tourists to a city centre, you know, remains key and hence that activity and interest in hotels.

I think it's also worth noting that hotels can bring other amenities and that's seen as quite important. So your cafes, your meeting spaces and leisure facilities, which can also be attractive to local residents. So when you're getting that city centre regeneration, I think, you know, what the hotel's offering to the wider community is really important.

Philip: What's the requirement for planning permission for a hotel conversion? Can you rely on permitted development?

Vicky: Unfortunately not. And I think it's a common mistake. So hotels fall within class C1, so that's the residential categories. They don't fall within use class E. So you hear lots of talk about use class E bringing that flexibility. So they don't benefit, for example, from the office to residential conversion, in the same way that normal residential C3 does. So generally you do need planning permission for change of use of a building to a hotel.

And a change to a hotel is seen as material. So unfortunately, no ability to change without planning permission. Even a building that's currently used as a hotel will often need planning permission. Just because of the scale of the changes.

I think the other thing to watch with hotels (and I see quite often) enforcement cases around temporary structures, so it's easy to think you're just erecting a marquee in the grounds. But as soon as that's used for more than 28 days, which is common if you think about hotels, catering for weddings, etc., then, you could be in a position where you need to get planning permission so that's really one to watch.

And any application for a hotel needs to be determined in accordance with the local development plan, for the area. And in central London, the development plan incorporates the London plan.

Philip: Is there general planning policy support for hotel development?

Vicky: At a national level you have the national planning policy framework. So one of the strands of sustainable development is economic development. So certainly in terms of that drive to make sure we're providing land not only for residential, which obviously been a huge driver for the government. But also the, you know, the economic uses, you know, those visitor attractions, the hotels that we need.

But in terms of specific references to hotels, it's actually very limited. So very much seen as a city centre, town centre use. So no real, sort of, policies driving that delivery. Obviously in terms of local planning policy, that will vary from area to area. So, you know, one of the things to watch is if you're thinking about a conversion. So it's not just what does the policy say on hotels, but actually is there a protective policy around protecting office space or rather employment space?

Or, you know, is the local authority to giving primacy to residential there when thinking about conversions? So really one to watch.

When it comes to London. So there is specific planning policy in the London plan. It's this idea of quality diverse accommodation. And with those conference facilities, you know, the banqueting facilities that can come with those with those large hotels, they are critical to maintaining London's global position.

So numbers: London Plan seeks to achieve additional 40,000 hotel bed spaces by 2036. 10% of those should be wheelchair accessible. And so again, this idea of, you know, very much inclusive environments, and an inclusive experience. One thing I would say about the London plan is it's quite specific on location. So very much driving hotel development towards the central activity zone. So, that's the West End, the city and anything beyond that then you're very much looking at city centre sites. Which sort of limits the benefits of tourism to wider areas.

Philip: What about the new London plan?

Vicky: We're at the very early stages on the consultation of the new London Plan. And certainly that consultation acknowledges this sort of push to have hotels in the central activity zone.

Areas with good transport links. And I think there is a recognition that perhaps that could be loosened, to think about actually getting the benefits of tourism to wider areas and more general areas, you know, and very much also just revitalising commercial areas.

Philip: What are the planning considerations when thinking about a new hotel development?

Vicky: The first thing is going to be the impact to the local environments. So applications are assessed based on factors such as scale, design, the appearance, you know, and then how does that fit in with the surroundings? So, you know, how does the height relate to neighbouring buildings? Is it in a conservation area?

Philip: How does that fit in within the wider environment?

Vicky: And I think that's the thing, I've mentioned landmark buildings, but actually they can be really, really tricky. When it brings into play all of the, you know, those heritage considerations. So, you know, you really need to think about getting in with the local authority and, you know, design and conservation team at a really early stage.

And, there's key stakeholders like, like national heritage. So, an example of how tricky, you know, those landmark hotels can be is Custom House. So the grade one listed structure on Lower Thames Street in the city. So I mean that was subject to a public inquiry.

Gosh, let me think, it was, I think back in 2022, and ultimately the internal refurbishment was just found to be lacking and have a harmful effect on the listed features and that wasn't outweighed by that public benefits of people now being able to access the building that they couldn't before. So I understand new plans have gone in. You know, we wait to see whether a hotel development comes out the other side. But we're now at 2025 and, you know, years of work would have gone in before that public inquiry and they're still waiting to develop that building as a hotel.

In terms of other considerations, I think the other one is transport and parking. Obviously increasing number of rooms, facilities, there's that concern about, obviously, people driving to the hotel as a destination and the traffic impact that comes from that.

So, we are seeing more and more hotels with limited parking. And there's always a drive, particularly to do travel plans and get that number down. The further consideration is impact on neighbours. So you've got noise, increased activities with people coming and going into the hotel, you know, often late at night, having been out in the city and coming back, you need to submit noise impact assessments, demonstrate measures to mitigate potential disturbances. That could include soundproofing, restrictions on outdoor events, or specific operational guidelines. So, using sort of management plans that say, you know, how are you going to work? You know, just things like drop off taxis or idling, how are you going to discourage your visitors from effectively calling those taxis, getting out of taxis, being noisy and generally upsetting the residents?

Finally, I think sustainability. So an increasingly important factor in planning permissions and, you know, in planning considerations, I think also just in terms of brand. So Radisson have just rebranded one of the hotels in Manchester city centre as the Radisson Net-Zero Hotel.

So again, that sort of drive to have that badge of being sustainable. So, things come into play, energy efficient design. What are you doing on waste reduction, green spaces? What's the whole, carbon lifecycle of the building, you know, what are you building? And how does that go into climate change and global warming?

Philip: Fascinating stuff and more to come on that no doubt. So what's the key consideration to effective hotel development?

Vicky: I suppose if I had to pick one of those, planning considerations, it has to be community engagement. It's a crucial aspect of the planning process, but I think it's really, don't just see it as a tick box, you know, really engage with the community. And through that process, I think you can really sell the community benefits.

I think particularly with, those extra spaces and the idea that they're assessable, so for you or I working at home, the fact that we do have somewhere where we can actually pop off to, a change of scenery I think it's really, really important to sell those benefits and to listen to what people's concerns are. So is it the taxis? And then what's the answer to that? The only thing I would say is that is then having listened to that consultation, and agree to make sure that those offers that you're saying to the public, we're going to deliver, you do need to make sure you deliver on and don't be surprised if, you know, in order for the local authority to give weight, then effectively, you need that to go in your planning agreements.

I think it's also easy to think that you can't manage what your visitors do. You know, as soon as they step out of the door of the hotel. But actually it's around brand and it's about selling the vision. And again, I think that's just really important in terms of how you're managing things, what you're communicating, what you expect from your guests.

So pressing that social responsibility is as important as pushing your green credentials when thinking about a new hotel. Any developer that are able to do that, to really sell that social side should be able to bring forward, hotel development successfully. We're here to offer our expertise and ensure the planning process does run smoothly and ultimately clients achieve the goal. The opening of that hotel.

Philip: So that's a great note to end on. Vicky, thanks very much.

Vicky: Thank you.

Philip:Thanks for sharing your insights. And to our listeners, please stay tuned for the next episode of Legal Considerations for Hotel Series, where we'll continue to explore the legal landscape shaping the industry. Thank you.

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